MRTPC slams DLF again for unfair trade practice

As it battles pre-IPO hiccups in a volatile market, construction major DLF was caught on the wrong side, the second time in the last three months, by Monopolies and Restrictive Trade Practices Commission (MRTPC), which found the builder guilty of "unfair trade practice".

DLF, which faced a similar verdict in May for billing customers for escalation charges, has now been ordered to return the money of a customer with interest who chose to cancel his allotment when asked to cough up more than originally told.

"The respondent (DLF) is directed to refund the applicant the component of the earnest money," MRTPC acting chairman M M K Sardana said in his order this week. The Commission also directed the company to pay 9% interest to its customer.

MRTPC slammed DLF for altering the basic terms of its Apartment Buyer's Agreement and termed it as "unforeseen burden".

"The respondent (DLF) is a very renowned builder and should normally not be incorporating clauses in which the balance is tilted towards it," MRTPC said.

In their appeal, Brigadier Umang Seth and Ekta Seth had accused DLF of "arbitrarily deducting money" in their DLF Regency Park, Gurgaon, scheme.

Irked, they chose to cancel their flats rather than pay the cost escalation charges.

The duo had entered into an agreement with DLF in 1993 for a flat in DLF Regency Park. As per the agreement, the Seths were to pay Rs 16.37 lakh in 42 installments in 10 years. DLF was supposed to hand over the possession of the flat in three years or by 1996.