CCI order on realty sector in two-three weeks: Chawla

The Competition Commision of India (CCI) is likely to issue an order in the case of alleged cartelisation against 20 real estate companies in two to three weeks. Meanwhile, its chairman, Ashok Chawla, opposed a suggestion by DLF chairman K P Singh for incorporating a provision in law to sue regulators if their decisions get overturned later. "We will come out with our order (on real estate cartelisation case). It will be a speaking order and I can't say at this stage what our thinking (on the matter is)," Chawla said, on the sidelines of Assocham's foundation day. The fair trade watchdog has completed hearings of entities that were issued notices with regard to the alleged cartelisation and anti-competitive trade practices. CCI had issued notices to about 20 entities, following a detailed probe by its director general, who handles its investigation wing.

Meanwhile, locked in confrontations with regulators - CCI and Securities and Exchange Board of India (Sebi), the DLF Chairman suggested regulators be sued if their decisions are overturned by appellate bodies or courts. Chawla did not agree with the idea.

DLF had earlier challenged a CCI order, while it also appealed against a Sebi order last year. The Competition Appellate Tribunal had also upheld the CCI order imposing a Rs 630-crore penalty against DLF, after which the realty major moved the Supreme Court. The

DLF's appeal against a Sebi order, in a matter related to inadequate disclosure in public offer documents, is pending before the Securities Appellate Tribunal.

The CCI had imposed penalty on DLF after finding it guilty of unfair business practices in the realty sector.

However, Chawla agreed that some of the regulators are going overboard and acting like policemen. Responding to a query on whether some regulators are going overboard, Chawla said he agreed with the same. "I substantially agree...some of the new regulators with new found zeal tend to become policemen," he said, adding watchdogs should be balanced. Chawla also agreed that "maybe we are overdoing in terms of regulation".

Delivering the lecuture, Chawla pitched for an over-arching legislation to ensure uniformity in economic regulations to the extent possible. The Financial Sector Legislative Reforms Commission (FSLRC) has already suggested Indian Financial Code to replace the bulk of the existing financial laws.

On the proposed Holcim-Lafarge merger deal, which was put under public scrutiny by the regulator, Chawla said the decision on the matter is likely in the "next one month". The deal between Holcim and Lafarge, both of which have good presence in India, would create one of the world's largest cement makers. It was announced in April 2014. After prima facie finding the transaction could violate fair trade norms, CCI put the same under public scrutiny in November last year.

Swiss major Holcim has controlling stakes in India's two leading cement makers - ACC Ltd and Ambuja Cements. He also added that CCI is examining the Rs 15,000-crore merger deal between Kotak Mahindra and ING Vysya that would create the country's fourth largest private sector lender. The deal was approved by the shareholders of Kotak Mahindra and ING Vysya earlier this month. On the status of complaint filed against e-retailers, including Flipkart, Chawla said the Commission is looking into the matter. CCI has been looking into alleged anti-competitive conduct by online retail firms like Flipkart India, Amazon, Jasper Infotech and Xerion Retail.