CCI rejects complaints against DLF’s arm and Tulip
The Competition Commission has dismissed complaints against DLF group firm Paliwal Developers and Tulip Housing over two projects saying that they were not dominant players in the markets concerned. In both cases, it was alleged that the companies abused their dominant position but the fair trade regulator has rejected the charges. It was alleged that Paliwal Developers abused its dominant market position by imposing unfair and discriminatory conditions with respect to sale of an office space at The DLF Galleria in Mayur Vihar, Delhi.
Against Tulip Housing, the complaint of anti-competitive business was with respect to sale of an apartment in Faridabad, Haryana. For the Paliwal Developers matter, ‘the market for provision of services for development and sale of commercial/ office space in Delhi’ was considered as the relevant one.
The Competition Commission of India (CCI) said Paliwal Housing is just one among several other real estate developers in Delhi offering similar services for development and sale of commercial space. “Since the Opposite Party Group (DLF group) is not in a dominant position in the relevant market, the question of abuse of a dominant position within the meaning of the provisions of section 4 of the Act does not arise,” CCI said in a recent order.
Section 4 of the Competition Act pertains to abuse of dominant market position. While rejecting the complaint in this case, CCI also cited examples of previous cases against the DLF group.
The regulator said the issue of abuse of dominance by the DLF group was alleged in the same relevant market, related to different projects. In those matters, CCI had opined that DLF was not dominant in that said market. “Thus, the Commission is of the view that there is no reason to deviate from its earlier finding and that the opposite party (Paliwal Developers) is not dominant in the relevant market...,” CCI noted. On the complaint against Tulip Housing, the regulator considered ‘provision of services for development and sale of residential apartments/ flats in Faridabad’ as the relevant market.
Rejecting the allegations, CCI said presence of a number of other players indicates that the buyers have options to choose from similar projects of other developers in the relevant market. Tulip Housing “does not enjoy a dominant position in the relevant market. In the absence of dominance, the assessment of alleged abuse does not arise,” CCI said.