Says they were evasive on behalf of DLF, wouldn’t answer queries.
The investigation wing of the Competition Commission of India (CCI) has sought penal action against two Haryana state government establishments — the Haryana Urban Development Authority (HUDA) and the Town and Country Planning Department — for not responding to its queries on a case relating to India’s largest property developer, DLF Ltd.
The investigation was based on the complaints registered by a group of DLF customers against the company’s alleged “abuse of dominant position” by putting “discriminatory and abusive clauses” in the apartment agreements provided to allottees of its Belaire and Park Place projects in Gurgaon, close to Delhi.
The Director General, Investigations, who gave his findings recently, is known to have endorsed the charges made by the allottees. The report said DLF’s conduct breached the Competition Act. The CCI will have its first meeting to consider the DG’s report on January 6, 2011.
“The DG’s report had found the conditions imposed on the allottees anti-customer and anti-competitive. It also felt the matter a fit case for inquiry by the government of Haryana,as there are possibilities of violations of several state laws as well,” a legal source privy to the report said.
Said a DLF spokesperson: “As the matter is sub judice, we would not like to comment on the issue, except that the CCI has asked us to give our comments/objections to this report.”
According to the report, the DGI had sent repeated notices to the secretary, HUDA, and Director, Town and Country Planning. However, there was no response from either office.
“Instead of co-operating, the government offices appeared to be evasive. This happened even after they were informed that CCI can take action under Section 43 of the Act if someone is unwilling to share the information sought,” the source said.
The petition before CCI, filed by Belaire Owners’ Association against DLF Ltd, Department of Town & Country Planning, Haryana, and Haryana Urban Development Authority, contended DLF had failed to deliver the residential projects on time and put “discriminatory and abusive clauses” in the apartment agreements provided to the allottees. It also said the builder was abusing its dominant position in the market.
The two projects are expected to have a total of 2,200 flats, priced between Rs 1.5 crore and Rs 3 crore, making the apartments worth Rs 4,500-5,000 crore in all.
The projects, which started in August 2006, were expected to be completed in three years, but the developer extended the deadline to April 2011.
Under the Competition Act, CCI can slap a penalty of up to Rs 1 crore for non-disclosure of information. In a recent case, Kingfisher Airlines was penalised by CCI for not providing sufficient details sought by the DG as part of its investigation. This matter was, however, stayed by the Competition Appellate Tribunal.
