CCI plans to frame new Agreement between the Developer- and the property buyer.
Competition Commission of India (CCI) plans to frame a new agreement between the property buyer and the developer. The new Agreement is designed on the context of DLF Case. CCI hopes that the new agreement will solve out most of the issues existing between the buyer and the developer.
Earlier the commission had fined real estate developer firm DLF for resorting to anti-competitive practices. The real estate firm was proved guilty of abusing its dominant market position. DLF was fined Rs.630 Cr.
Hearing the appeal of DLF, the Competition Appellate Tribunal (COMPAT) asked the Competition commission to frame a new agreement. COMPAT asked the Commission to prepare a framework which should become a model for all commercial agreements.
The fair trade regulator prepares the model framework in relation with DLF case of violation of dominant market position. The commission received petitions against the real estate major from home buyers of two DLF projects in Gurgaon.
Chairman of CCI Ashok Chawla said that he expect the new agreement to become a standard agreement for all commercial dealings. He was answering about the questions about the new agreement. He revealed his hope that it would be a benchmark for the entire market.
Mr. Chawla seemed confident that once the agreement passes through the judiciary test, it would certainly take care most of the commercial aspects. It would bring a better understanding between the buyers and the builders.
COMPAT had asked CCI to revise the existing agreement and bring out a better agreement. The Tribunal pointed out that there exist a need of establishing a balanced and agreement between buyers and builders. CCI remains optimistic to finalize the main parameters required for implementing a balanced agreement.
Mr. Chawla said that CCI is not considered about how the building is built but rather how the sale of the building is done. Authority of CCI is confined to look into the matters related to the buyer- seller agreements. CCI mainly looks at whether any anti-competitive practices are involved in the sale of the property.
