CCI rejects Chennai association’s complaint against DLF
1 Dec 2012 6:03 AM IST
Competition Commission has rejected a complaint of alleged abuse of market dominance against real estate major DLF, related to a housing project in Chennai. The fair trade regulator Competition Commission of India (CCI) has said there is no prima facie evidence to show that DLF abused its market position regarding the Chennai project.
Chennai-based DGCOM Buyers & Owners Association had moved the Commission alleging abuse of dominant market position by DLF. The complaint was filed against DLF Ltd, New Delhi (Opposition Party 1) and DLF Southern Homes Pvt Ltd, Chennai (Opposition Party 2). The complaint related to the housing project, developed by DLF Southern Homes Pvt Ltd, is situated at Old Mahabalipuram Road (OMR), IT Express Corridor, Chennai.
Dismissing the plea, the Competition Commission of India said proceedings have been closed under ‘section 26(2) of the (Competition) Act.’ Under this section, the regulator can close a case if it does not find any prima facie evidence to proceed further.
‘...We find that no prima facie case was made out by informant to hold OP2 or the group of OP1 and OP2 as dominant in the relevant market of providing 2/3 BHK flats on OMR IT Corridor,’ the order said in an order dated November 27.
The association had alleged that after nearly 18 months from bookings the flats and after paying crores of rupees, DLF ‘asked the allottees to sign an agreement which contained highly abusive clauses.’
DLF holds 51 per cent stake in DLF Southern Homes.
Chennai-based DGCOM Buyers & Owners Association had moved the Commission alleging abuse of dominant market position by DLF. The complaint was filed against DLF Ltd, New Delhi (Opposition Party 1) and DLF Southern Homes Pvt Ltd, Chennai (Opposition Party 2). The complaint related to the housing project, developed by DLF Southern Homes Pvt Ltd, is situated at Old Mahabalipuram Road (OMR), IT Express Corridor, Chennai.
Dismissing the plea, the Competition Commission of India said proceedings have been closed under ‘section 26(2) of the (Competition) Act.’ Under this section, the regulator can close a case if it does not find any prima facie evidence to proceed further.
‘...We find that no prima facie case was made out by informant to hold OP2 or the group of OP1 and OP2 as dominant in the relevant market of providing 2/3 BHK flats on OMR IT Corridor,’ the order said in an order dated November 27.
The association had alleged that after nearly 18 months from bookings the flats and after paying crores of rupees, DLF ‘asked the allottees to sign an agreement which contained highly abusive clauses.’
DLF holds 51 per cent stake in DLF Southern Homes.
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