Axiom
Call Us - 91 33 4020 4020  
Sign In  I  Sitemap   
AxiomEstates - India Real Estate
     India Properties Worldwide
Axiom Banner
 
Bookmark and Share
E-mail Print Tell A Friend


Residential Properties

 
 
Indian Real Estate News : Delhi NCR
Tribunal asks CCI to complete proceedings in DLF cases by September
Source: ET Bureau Jul 19, 2012
The Competition Appellate Tribunal has asked the competition watchdog to complete proceedings in three cases against real estate firm DLF by September 30, while refusing to allow the firm to use the contentious clauses in its agreement with buyers.

The tribunal on Wednesday directed the Competition Commission of India to submit its suggestions on modification of the allegedly abusive clauses, besides completing all pending proceedings in the cases slapped by the buyers of Park Place, Belaire and Magnolia projects in Gurgaon. Responding to a query from the firm, the tribunal clarified that the CCI's 'cease and desist' order would remain in place, implying that DLF cannot enforce or use the allegedly one-sided clauses with its existing or new customers.
The tribunal also asked DLF and the buyers of Magnolia project to submit their version of the proposed modified clauses to the CCI by September-end, so that all three cases can be taken up together in the next hearing scheduled for the beginning of October.
This was the tribunal's first hearing since Compat chairman Justice Arijit Pasayat retired on May 9. The hearing took place under Justice VS Sirpurkar, the new chairman, who is also heading the new bench.
The CCI had imposed Rs 630 crore penalties on DLF in August 2011 for alleged abuse of its dominant position and for one-sided contracts with buyers of Belaire and Park Place projects. It had also passed a 'cease and desist' order over unfair conditions imposed on the buyers of its flats. The Compat stayed the order in November 2011, after DLF filed an appeal against the CCI order.
The buyers of the two projects had filed a complaint with the CCI in May 2010. The grounds of the complaint were delay in possession and arbitrary changes in the building plan and structure by the builder. For instance, Belaire was to originally have five towers with 19 floors each but DLF later increased the number of floors to 29.
Harsh Sehgal, president of the Park Place Residents Welfare Association, told ET that even though the CCI's 'cease and desist' is in place, DLF has been demanding interest on delayed payments from home buyers in these projects at the rate of 15%-18% and has been paying only Rs 10 per sq ft for delays on its part only to those who have not delayed payments.
"We had earlier filed a contempt petition with the CCI which was heard on May 14 and the order on it is still awaited," said Sehgal.

Tag: real estate of india, delhii real estate, DLF
 Leave your comments
  
Comments

Citywise News
    All India
    Kolkata
    Mumbai
    Delhi NCR
    Bangalore
    Goa
    Pune
    Chennai
    Other Cities
News Category
    Home Loans
    Announcements
    Tax and Legal
    Policy
    Commercial
    Infrastructure
    FDI
    Developer
    Others
Axiom