Rejecting the plea of realty major DLF Ltd, competition appellate body COMPAT has allowed watchdog CCI to continue with its enquiry against the company, which is under the scanner for allegedly misusing its dominant market position.
DLF had moved the Competition Appellate Tribunal (COMPAT) against Competition Commission of India (CCI) for initiating a probe without hearing the accused.
"COMPAT has dismissed DLF's appeal that sought stay on the CCI enquiry against it. They had appealed under section 33 of the Competition Act saying that no enquiry can be initiated unless reasons are recorded to arrive at an 'opinion' that a 'prima-facie case' exists," an official said.
The investigations against the realtor is already complete, with the Director General having found DLF violating, besides others, Section 4(2)(a) of the Competition Act.
A company violates Section 4(2)(a) of the Competition Act when it directly or indirectly imposes unfair or discriminatory condition or price in purchase or sale of goods or services.
In the report to the CCI, DG has sought initiation of action against DLF under various sections of the Competition Act, 2002.
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Following provisions in the Act, the CCI has sent a showcause notice to DLF asking it to explain itself vis-a-vis the findings of the DG, after which both the accused and aggrieved parties would be heard and subsequently a final order would be passed by the Commission.
In May, 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.
Another individual has alleged that for its Height project, DLF had initially announced it as an 18-floor apartment, but later on added 10 more storeys without informing buyers.