DDA comes under CCI scanner for abuse of dominance

The Competition Commission of India (CCI) has ordered a probe against the Delhi Development Authority (DDA) for allegedly abusing its dominant position in the real estate market.

The move comes in the wake of a complaint by a customer, Adla Satya Narayan Rao, who claimed that he was allotted a flat by DDA in New Delhi’s Vasant Kunj area and which was announced to be complete. However, the ground reality was different. Rao has further alleged that the developer’s agreements were heavily loaded in its favour.

Following a preliminary investigation, the competition watchdog has referred the case to its director general-investigation for further probe.

“After hearing the informant and DDA, CCI came to a conclusion that a prima facie case has been made for investigation of allegations by the informant for infringement of the provisions of the Act,” the ministry of corporate affairs (MCA) said in a statement on Wednesday. MCA is the administrative ministry for CCI.

When contacted, a DDA  spokesperson said, “Whatever issues have been raised by the CCI, are being examined. They are mainly questioning policy issues; we would send them replies accordingly.”

According to the MCA statement, the DG-investigation would submit its report in the case within 60 days.

Earlier this year, the competition watchdog had passed orders against private sector real estate giant DLF in a case related to a housing society in Gurgaon. It had also imposed a fine of over Rs 600 crore against DLF for abuse of its dominant position and had asked the realty major DLF to modify its builder-buyer contract. Subsequently, DLF secured a stay against the order. Besides, a number of other private sector realtors have also been probed separately by CCI.

However, this is the first probe against DDA, which is the biggest land-owning agency in the Delhi region and has been entrusted with the job of providing housing accommodation to the residents of the state.