DLF extends losses post SC order to pay Rs 630 cr penalty

This is following a case related to abuse of market dominance

After losing almost 5% in yesterday's trade, DLF extended losses with another 2.5% dip to Rs 178.5 in noon trades today.

The stock opened at Rs 182 and slipped to a low of Rs 177 thus far. A combined volume of 8.8 million shares changed hands on BSE and NSE.

In August 2011, the Competition Commission of India (CCI) had found DLF violating fair trade norms and imposed a fine of Rs 630 crore on it following a complaint by a Belaire Owners' Association in Gurgaon.

In July this year, DLF had moved the apex court against the Competition Appellate Tribunal (COMPAT), which in May upheld a two year old CCI penalty in a case related to Gurgaon housing complex, The Belaire.

The Supreme Court on Wednesday directed DLF, the country’s largest real estate player, to deposit Rs 630 crore in the registry within three months. The court rejected the company’s request for a stay on the Competition Commission of India’s (CCI’s) order in a case related to abuse of market dominance.

The penalty is a little less than the company’s annual net profit of Rs 646.21 crore in 2013-14. The final court order is yet to come.