Recently, Competition Commission of India (CCI) has accused DLF for imposing unfair conditions on home buyers on its high-end residential project Magnolia in Gurgaon.
For which, Magnolia Flat Owners’ Association had filed a complaint against DLF Universal, Haryana Urban Development Authority and the Director Town and Country Planning, Haryana, with the Competition Commission of India (CCI).
CCI director general found in the report that DLF has issued allotment letters, and apartment buyers’ agreements were signed even before it got approvals from the town planner. Also, the building plans have been revised by the builder and also applied for increasing the height of the towers after collecting 90% of the money from the buyers, and two months after the original date of delivery promised by the company.
DLF has also been found guilty of abusing its position at the Park Place Project in Gurgaon by CCI, where they asked the company to cease and desist from imposing unfair conditions on buyers. The order had also directed DLF to suitably modify the unfair conditions imposed on existing buyers within three months.
President of the Magnolia Flat Owners’ Association, Drish Paul, said that “Many people are living on rent, waiting for apartments to be handed over. We would eventually like to get compensated for the loss due to the delay in completion of the project.”
Commission has found DLF to be in contravention of section 4 (2) (a) (i) of the Act in the current order relating to Magnolia, which says that there will be abuse of dominant position if an enterprise or a group, directly or indirectly, imposes unfair or discriminatory condition in purchase or sale of goods or service; or price in purchase or sale (including predatory price) of goods or service
In the past, CCI had slapped a fine of 630 crore on DLF for unfair practices, abuse of market dominance and disregard for consumer rights in its Belaire residential project in Gurgaon in a similar order in August 2011.
