The Competition Commission of India (CCI) has issued a stern reprimand to the real estate giant DLF Ltd in its latest ruling regarding the cancellation of an apartment allotment for a member of the DLF Park Place Residents' Welfare Association (RWA). The CCI stressed that the company’s action was in “direct contravention” of its stay order from September 2010.
In a bid to prevent abuse of dominant market position that could negatively impact allottees, the commission passed its order, which harshly criticized the developer for exhibiting discriminatory practices against members of the owners’ association, as well as other owners and allottees.
The specific cancellation occurred for one Vipin Mahajan, involving a letter sent on January 28 of the previous year, while an interim order was active. Despite ongoing directives, Mahajan claimed that the opposite party proceeded to issue a cancellation letter in January, forfeiting Rs 23,06,778 from a total payment of Rs 44,89,503.
The CCI acknowledged the restoration of status quo concerning Mahajan’s allotment, expressing that no further directives were needed regarding the restitution of his apartment, which afforded some relief to the affected allottee. Nevertheless, the commission emphasized that according to the Competition Act of 2002, it was required to impose penalties due to what was seen as a flagrant non-compliance. Such a violation falls under Section 42 of the Act.
Additionally, Section 48 of the same legislation establishes liability for penalties for individuals responsible for the company’s operations at the time of such contraventions. DLF is now mandated to reveal the identities of those responsible for these infractions and provide a show-cause notice explaining why penalties should not be enacted. The continuation of this case is slated for hearing on May 17.
In light of these developments, a spokesperson for DLF Ltd reassured stakeholders that the company has “restored the ownership of the apartment which was cancelled due to non-payment of dues by the allottee.”