CCI rejects anti-competitive charges against Parsvnath

Competition Commission has rejected charges that realty major Parsvnath Developers and its arm abused their dominant market position with respect to development and sale of residential apartments in Gurgaon.
A complaint by an individual had alleged that Parsvnath Developers and its subsidiary Parsvanath Hessa Developers imposed unfair terms and conditions in the 'Builder Buyer Agreement'.
The complaint was filed in relation to Parsvanath's residential project 'Parsvanath Exotica' in sector-53 of Gurgaon, Haryana.
In an order released today, the Competition Commission of India (CCI) said that "no prima facie case of contravention of the provisions of section 4 of the (Competition) Act is made out against the opposite parties in the instant matter".

"Accordingly, the matter is closed under...The Act," the fair trade regulator added.
The Commission observed that there are were many other large real estate developers operating in Gurgaon.

"The presence of these renowned builders in the relevant market indicates that the informant was not dependent on opposite party 1 (Parsvanath Hessa) for booking a residential unit in Gurgaon," CCI said.
"Therefore...Opposite party 1 does not appear to be in a dominant position in the relevant market," it added.
The complainant had alleged that most of the clauses in the buyers agreement "were onerous and one-sided".
It was alleged that the agreement entailed an imposition of a high compound interest rate in case of delay in paying instalment whereas Parsvanath Hessa was liable for a nominal simple interest rate in case of delay, if any, on its part.

Among others, it was alleged that the realty firm had the unilateral right to increase or decrease the super area without consulting the buyer, and that the buyer was bound to pay additional amount as demanded by the company or else accept reduction in the area.