India's largest realty firm DLF today stated it will comply with the direction of the Supreme Court to deposit the Rs 630 crore penalty imposed by the competition watchdog CCI and said it remained confident about the merits of its case.
The apex court today said the total amount should be deposited within three months with its registry pending the outcome of the appeal filed by DLF against May 19 order of Competition Appellate Tribunal (COMPAT) that had upheld the penalty of Rs 630 crore imposed by the CCI.
The Competition Commission of India (CCI) had slapped the fine on DLF in August 2011 for allegedly resorting to unfair business practices.
In a filing to the BSE, DLF said: "The copy of the order passed today by the Supreme Court is still awaited. DLF will take all steps to comply with the directions of the Supreme Court and remains confident of the merits of its case."
The company further said that its appeal against the order of COMPAT has been admitted today by the Supreme Court.
"The Supreme Court directed DLF to deposit Rs 630 crore in an interest-bearing fixed deposit with the Court for the duration of the appeal proceedings.
"The amount is to be deposited within a period of three months, of which Rs 50 crore is to be deposited within three weeks. The entire deposit is subject to the final decision of the Supreme Court," DLF said in the filing.
In August 2011, the CCI had found DLF violating fair trade norms and imposed a fine of Rs 630 crore on it following a complaint by a Belaire Owners' Association in Gurgaon. It was in May 2010 that the buyer's association had complained against DLF.
Reacting to the SC direction, shares of DLF fell by 4.44 per cent to settle at Rs 183.05 on the BSE. In intra-day, it tumbled 5.32 per cent to Rs 181.35. At the NSE, the stock slipped 4.49 per cent to end at Rs 183.05.
