In its second major probe against a realty major in the NCR region, fair trade regulator CCI today ordered a detailed investigation against Jaypee Greens for suspected violation of the competition norms.
The case relates to a project involving construction and sale of villas in Greater Noida area in the national capital region.
CCI said its probe follows a complaint 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 and was allotted the same.
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CCI 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 is of the view that the above said conduct of the Opposite Party, 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.
"In view of the foregoing, the Commission is of the view that there exists a prima facie case of contravention of provisions of section 4 of the Act by the Opposite Party and it is a fit case for investigation by the Director General (DG).
"Accordingly... The Commission directs the DG to cause an investigation into the matter and to complete the investigation within a period of 60 days from the receipt of this order," CCI said.
In case the DG finds that Jaypee has acted in contravention of the provisions of the Competition Act, it has also been asked to investigate the role of the officials and persons who at the time of such contravention were in-charge of and responsible for the conduct of the business of the company.
