Realtors under CCI lens

The commission plans to probe complaints against DLF.

In a bid to check the rampant malpractices in the realty sector, the Competition Commission of India (CCI) has decided to, on its accord, enquire if various developers are misleading the buyers, apart from looking into specific complaints against the market leader, DLF.

Taking note of the general complaint of delayed possession, change in terms and conditions of sale agreements and developers making it almost impossible for a customer to opt out, CCI has also decided to look into complaints of misleading advertisements, a CCI source said.

On the basis of complaints from individuals who have booked flats from various developers, CCI has referred the complaints against DLF to the director general-investigations for a probe, the source said.

When contacted, DLF officials declined to comment saying they had not received any notice from CCI, a market watchdog created to check abuse of market dominance.

“We have not received any letter from CCI in this regard so far. Therefore, we would not like to comment on this matter, without knowing the exact nature of the complaint,” a DLF spokesperson said.

According to one such complaint, DLF had promised to complete its Blair residential project in Gurgaon in 2009, but the buyers are yet to get possession.

Another individual has alleged DLF had initially announced a project as an 18-floor apartment, but later on added 10 storeys without informing the buyers.

These complaints were admitted under Section 4 of the Competition Act of 2002, which pertains to abuse of dominance by a player in a relevant geography.

CCI is learnt to have “prima facie” found that DLF had abused its dominant market position and the agreement was "one-sided" in nature and there were "variations from the initial stipulations".

CCI, sources said, could also look into similar practices by other developers.

The commission, which became fully functional last July, is empowered by an Act of Parliament to penalise the guilty or ban a prevalent malpractice. The commission sources said it was more of an industry issue and buyers in general, were facing such problems, irrespective of any specific developer. It is, therefore, appropriate to look into the general practice, along with specific complaints.