DLF slips after SC asks to pay Rs 630 crore CCI penalty

DLF fell 2.38% to Rs 178.70 at 9:59 IST on BSE after the Supreme Court on Wednesday, 27 August 2014, directed the company to deposit Rs 630 crore in the registry within three months.

Meanwhile, the BSE Sensex was up 103.79 points, or 0.39%, to 26,663.94.

On BSE, so far 3.93 lakh shares were traded in the counter, compared with an average volume of 13.43 lakh shares in the past one quarter.

The stock hit a high of Rs 183.05 and a low of Rs 178.30 so far during the day. The stock hit a 52-week high of Rs 242.80 on 9 June 2014. The stock hit a 52-week low of Rs 121 on 4 September 2013.

The stock had underperformed the market over the past one month till 27 August 2014, falling 10.55% compared with 1.66% rise in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 10.49% as against Sensex's 8.19% rise.

The large-cap company has an equity capital of Rs 356.35 crore. Face value per share is Rs 2.

DLF after market hours on Wednesday, 27 August 2014, said that the Appeal filed by DLF against the Order of the Competition Appellate Tribunal (COMPAT) was admitted on 27 August 2014, by the Supreme Court of India. The Supreme Court directed DLF to deposit Rs 630 crore in an interest-bearing fixed deposit with the court for the duration of the appeal proceedings. The amount is to be deposited within a period of three months, of which Rs 50 crore is to be deposited within three weeks, DLF said. The entire deposit is subject to the final decision of the Supreme Court, DLF added. The copy of the order passed by the Supreme Court is still awaited, DLF said. DLF will take all steps to comply with the directions of the Supreme Court and remains confident of the merits of its case, DLF added.

Shares of DLF fell 4.44% to Rs 183.05 on Wednesday, 27 August 2014.

On 11 July 2014, DLF moved the Supreme Court against the COMPAT order announced in May 2014 that upheld competition regulator Competition Commission of India's (CCI) ruling, which imposed Rs 630 crore penalty on DLF with 9% interest alleging abuse of dominant position in Gurgaon.

In 2011, CCI had found DLF violating fair trade norms and abusing its dominant position and imposed a penalty of Rs 630 crore. This as a complaint was filed by Belaire Owners Association, Gurgaon - the owners' association of a DLF project. The association alleged that DLF imposed highly arbitrary, unfair and unreasonable conditions on allottees of apartments and these conditions had serious adverse effects and ramifications on the rights of the buyers. COMPAT then dismissed DLF's plea against the fine imposed by the CCI.

COMPAT had given DLF 60 days to pay the penalty or approach the Supreme Court. DLF had then said that it would move the Supreme Court on the matter.

On a consolidated basis, DLF's net profit fell 29.48% to Rs 127.77 crore on 24.52% decline in total income to Rs 1851.60 crore in Q1 June 2014 over Q1 June 2013.

DLF's primary business is development of residential, commercial and retail properties. It has approximately 308 million square feet (msf) of planned projects with 55 msf of projects under construction.

Powered by Capital Market - Live News