The Delhi High Court has allowed the Competition Commission of India (CCI) to proceed with its investigations against leading property developer, DLF, on charges of putting “discriminatory clauses” in the apartment agreements given to allottees of two of its high-profile projects in Gurgaon.
In an order on January 4, the HC rejected most of the complaints made by DLF against the actions of CCI in the case so far.
The petition filed by Belaire Owner’s Association before CCI against DLF, the Department of Town and Country Planning, Haryana, and the Haryana Urban Development Authority says DLF failed to deliver the residential projects on time and put “discriminatory and abusive clauses” in the apartment agreements provided to the allottees. It also says the builder has been abusing its dominant position.
The two projects are expected to have a total of 2,200 flats, priced between Rs 1.5 crore and Rs 3 crore each, taking the apartments’ total value to Rs 4,500-5,000 crore.
The projects, which started in August 2006, were expected to be completed in three years, but the developer had extended the deadline to April 2011.
DLF’s petition in the HC had challenged the very first move of CCI in May last year, to ask its investigation wing to conduct an inquiry into the prima facie merit of the case. DLF also questioned the findings of the director general (investigations) of CCI and the interim order issued by the agency to stop DLF from taking any punitive action against allottees during the pendency of the investigations. The company also complained against the CCI move to pursue its hearing based on the DG’s report last month.
Dismissing most arguments, the HC permitted CCI to proceed with the hearing, but after ensuring that DLF gets access to some of the documents forming part of the investigation report sought by the company.
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The next CCI hearing is slated for February 17. The director general (investigations) of CCI, who submitted his findings to the commission recently, is known to have endorsed the charges made by the allottees against DLF.
While Additional Solicitor General Parag P Tripathi represented CCI, Ashok H Desai appeared for DLF. The petitioners were represented by M L Lahoty.