DLF slips after CCI modifies builder-buyer agreement

The Competition Commission of India (CCI) issued the order after trading hours on Thursday, 3 January 2013.

Meanwhile, the BSE Sensex was down 30.75 points, or 0.16%, to 19,734.03.

On BSE, 59,000 shares were traded in the counter as against an average daily volume of 8.62 lakh shares in the past one quarter.

The stock hit a high of Rs 235.40 and a low of Rs 233.10 so far during the day. The stock had hit a 52-week high of Rs 261.35 on 22 February 2012. The stock had hit a 52-week low of Rs 169.55 on 4 June 2012.

The stock had outperformed the market over the past one month till 3 January 2013, rising 13.27% compared with the Sensex's 2.38% rise. The scrip had also outperformed the market in past one quarter, rising 4.26% as against Sensex's 4.74% rise.

India's largest real estate firm by market capitalisation has an equity capital of Rs 339.73 crore. Face value per share is Rs 2.

The matter pertains to two separate DLF projects in Gurgaon. The CCI in its order after considering the modified terms of the Apartment Buyers Agreement submitted by both parties, has modified the terms of the Apartment Buyers Agreement in a manner which it considers fair and reasonable and takes into account the interest of both parties, the Ministry of Corporate Affairs said after trading hours on Thursday, 3 January 2013. CCI in its earlier order dated 12 August 2011, had held that DLF was a dominant enterprise which had violated the provisions of Section 4 of the Competition Act 2002 by entering into an agreement with apartment allottees that was one sided, abusive and unfair to the allottees. Accordingly the Apartment Buyers Agreement has been amended such that the abusive and unfair conditions present in the original one sided agreement have been removed, the Ministry of Corporate Affairs said.

The CCI in its order has also considered the relevant provisions of the laws applicable to the development of group housing projects in Haryana, particularly the mandatory requirements which must be followed by every developer/builder, but which were not followed by DLF in this case, the ministry said in a statement.

DLF's consolidated net profit fell 62.8% to Rs 138.51 crore on 19.5% decline in net sales to Rs 2039.54 crore in Q2 September 2012 over Q2 September 2011.

DLF's primary business is development of residential, commercial and retail properties.

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