CCI scrutinising cases against property developers
PTI | 10:02 PM,Feb 17,2012Mumbai, Feb 17 (PTI) The Competition Commission of India (CCI) is scrutinising several cases against developers for allegedly abusing their dominant position based on the information received by customers, investors and NGOs, a senior official said today. "We are receiving information from various stakeholders. We are scrutinising all the cases and we will submit a report to the commission in a month's time," CCI Director General A K Chauhan told reporters on the sidelines of RICS Real Estate Conference 2012 here today. "We have pooled in all the information and are working on it," he said. Chauhan said most of the cases they are investigating were similar to the complaints received against real estate developer DLF. Flat buyers had filed a complaint against construction major DLF in May 2010, challenging the delay in possession and alleged arbitrary changes to the building plan and structure. DLF's project Belaire was to originally consist of five towers with 19 floors each, but DLF later increased it to 29 floors. "We have received information about developers both small and big across the country. It is not restricted to any urban or metro but also in Tier I and II cities," he said, adding, "once the report is submitted, the Commission will pass necessary remedial orders." On the DLF case, Chauhan said, "currently, the case is with the Competition Appellate Tribunal (Compat) and we believe that the authority will uphold our order." When asked what they would do if the CCI petition against DLF is dismissed, he said, "we don't think this will happen as our case is very strong. But if need be, we may approach the Apex Court." The Commission had earlier asked DLF to change the contentious buyers agreement within three months. Compat said that while CCI had given three months time to modify the terms, it had not specified what changes needed to be made. Later, DLF challenged the CCI order in the Compat which has stayed the Rs 630-crore penalty imposed on it by anti- competition watchdog in August following complaints regarding abuse of market position by the country's largest real estate player. The tribunal also directed DLF to give an undertaking that it would deposit the entire penalty amount with 9 per cent interest if it finally loses the case.
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