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CCI imposes Rs 600 cr penalty on DLF

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Press Trust of India Mumbai
Last Updated : Jan 20 2013 | 11:53 PM IST

Competition watchdog CCI today imposed a penalty of around Rs 600 crore on realty major DLF Ltd for abusing its dominant market position.

The penalty, which amounts to 7% of the company's average annual turnover of last three years, was imposed as DLF has been proven guilty of violating section 4(2) of the Competition Act, 2002, sources told PTI.

A company violates Section 4(2)(a) of the Competition Act when it directly or indirectly imposes unfair or discriminatory conditions or prices with respect to the purchase or sale of goods or services.

In May last year, on the basis of complaints by some people who booked flats in DLF projects, the CCI had referred the matter for a probe by the Director General (Investigations).

According to one such complaint, DLF had promised to complete its residential project in Gurgaon, called Belaire, in 2009, but buyers are yet to get possession.

In addition, DLF has increased the number of floors in the apartment complex from the original figure given to buyers. This led to the number of apartments in Belaire increasing to 564 from 384.

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First Published: Aug 16 2011 | 2:25 PM IST

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