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DLF moves SC against Rs 630 cr penalty

In May, COMPAT had dismissed a DLF plea against Rs 630 crore penalty imposed by CCI

BS Reporter New Delhi
Country's largest real estate player DLF has moved Supreme Court against Competition Appellate Tribunal (COMPAT), which upheld order of imposing Rs 630 crore penalty against the company.

In May, COMPAT had dismissed a DLF plea against Rs 630 crore penalty imposed by Competition Commission of India (CCI) two years ago in a case related to Gurgaon housing complex, Belaire.

According to people close to the development, DLF has moved Supreme Court on Thursday.

CCI had imposed the penalty on DLF in 2011 on petition by flat buyer associations of two if its projects in Gurgaon, DLF Park Palace and The Belaire. The buyers had alleged delays in the project and increase in number of floors than planned earlier. CCI had also asked the company to modify Apartment buyers agreement. Subsequently, DLF had moved COMPAT and managed to get a stay order on the penalty.

 

DLF is also again under CCI's scanner for allegedly drafting a one-sided agreement with flat buyers in its New Town Heights project in Gurgaon.

In a statement issued in May, DLF had said "We have successfully delivered Park Place, Belaire and Magnolia projects which were the subject matter of the above appeals. The Company has respected in true letter and spirit the customer commitments made by it. Out of 2600 apartments, over 2200 have been handed over and over 1800 number of families are already residing there".

DLF has been reeling under huge debts and is on a divestment spree to reduce its debt which stood at Rs 18526 crore at the end of March 2014.

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First Published: Jul 11 2014 | 6:00 PM IST

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