CCI orders probe against Jaypee Greens in realty project

Fair trade regulator CCI has ordered a probe against realty firm Jaypee Greens for alleged violation of the competition norms in a housing project in Greater Noida.

This is the second major probe against a realty major in the NCR region.

The case relates to a project involving construction and sale of villas in Greater Noida area in the national capital region.

The investigation has been ordered by CCI on a complaint filed by a buyer, who had booked a villa worth Rs 4.05 crore for which he had already paid 95 per cent of the total cost but was allotted the accommodation after 8-month delay.

The complaint alleged that the firm was abusing its dominant position.

The Competition Commission of India said it examined the provisional allotment letter issued by Jaypee and found that "some of its clauses as elaborated in the earlier part of this order, prima facie, are unfair, one sided and heavily loaded in favour of the Opposite Party (Jaypee Greens)".

The Commission said conduct of the Jaypee "emanating from its dominant position in the relevant market, prima facie amounts to imposition of unfair terms and conditions on the Informant and other buyers of Villa in Jaypee Greens which is anti-competitive in terms of...(the Competition) Act.

"Moreover, in some earlier cases...Against the Jaypee Group, similar clauses were held to be unfair, onerous, one-sided by the Commission in its prima facie orders," the regulator said in its order.

CCI has already passed orders against some other builders in the NCR region, including the realty giant DLF, in several other cases.

After looking into the allegations, the Commission said it is of the view that "prima facie" the conduct of Jaypee amounts to abuse of dominant position.

Accordingly, CCI has directed its investigation arm, Director General (DG), to probe the matter and complete the inquiry within 60 days.

During the course of the investigation, the DG would also look into the conduct of officials of Jaypee, CCI said in its order.