DLF comes under antitrust scanner again

Fair-trade regulator Competition Commission of India (CCI) has ordered a fresh probe against real estate player DLF over alleged abuse of its dominant position in the "provisioning of services for the development and the sale of residential units in Gurgaon".

The company has been under the CCI scanner and has been penalised for the same reasons in other cases.  

In an application by Amit Mittal against DLF and its wholly owned subsidiary, DLF New Gurgaon Homes Developers, CCI observed that some clauses in the buyers' agreement were in violation of the competition norms.

The applicant said that many clauses with respect to apartments in a residential township, Regal Gardens at DLF Garden City, in Gurgaon were "highly unfair and discriminatory towards the buyers". DLF New Gurgaon Homes Developers had launched this township in Sector 90.

"Some terms seemed onerous and one-sided and depict how DLF has misused its dominant position to mould the clauses in its favour," CCI said in its order. DLF was not available for comment. Noting it had already held DLF dominant in Gurgaon, the CCI said the applicant had relied heavily on the Commission's orders against three DLF projects: Belaire, Park Place and Magnolia.

For the Belaire case, Competition Commission slapped a hefty penalty of Rs 630 crore on the realty firm for violating fair trade norms in 2011.

The penalty was challenged by DLF before the Competition Appellate Tribunal, which upheld CCI order and the company has gone to the Supreme Court. The Supreme Court had, on 28 November 2014, asked DLF to pay its complete penalty in Rs 75 crore installments as DLF cited financial difficulties.