CCI again caught DLF for imposing unfair conditions on flat owners.

CCI Accusation Against DLF

The Competition Commission of India (CCI) has once again accused DLF of imposing unfair conditions on home buyers, this time concerning its high-end residential project, Magnolia, in Gurgaon. The 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 CCI.

Key Findings by CCI

According to the CCI director general's report, DLF issued allotment letters and signed apartment buyers’ agreements even before securing approvals from the town planner. Furthermore, the builder revised the building plans and applied for increasing the height of the towers after collecting 90% of the money from buyers, and two months after the original date of delivery promised by the company.

Previous Incidents

CCI had previously found DLF guilty of abusing its position at the Park Place Project in Gurgaon. The commission instructed the company to cease and desist from imposing unfair conditions on buyers and to modify these conditions for existing buyers within three months.

Home Buyers' Concerns

Drish Paul, president of the Magnolia Flat Owners’ Association, expressed the concerns of the buyers. "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."

Historical Context

In a similar order in August 2011, CCI had imposed 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.