Complaint Against DLF Rejected by Fair Trade Regulator

New Delhi: The Competition Commission of India (CCI) on Wednesday rejected a complaint of anti-competitive practices made against realty major DLF relating to a project in Gurgaon, Haryana.

It was alleged that DLF Universal, a subsidiary of DLF Ltd, abused its dominant market position by imposing unfair and arbitrary terms and conditions in the sale agreement pertaining to sale of five units in the DLF Corporate Greens project at Sector 74A, Gurgaon.

Fair trade regulator CCI dismissed the allegations after a DG-level investigation on finding that there was no violation of competition norms since DLF is not in a dominant position in the relevant market.

For this case, ‘the market for the services of development and sale of commercial space in Gurgaon’ was considered as the relevant market.

“Since OP Group (DLF Group) does not appear to be in a dominant position in the relevant market, the question of abuse of dominant position within the meaning of the provisions of section 4 of the Act does not arise,” CCI said in the order.

Section 4 of the Competition Act pertains to abuse of dominant market position.

Based on facts provided by the complainant, CCI prima facie found that there might be a violation of the provisions of Section 4 of the Act and directed the Director General (DG) to conduct investigation into the matter.

CCI in its order said that large number of players and fragmented nature of market, and considering the number of commercial projects launched and sold by DLF and its competitors over the past five years, it seems that DLF does not hold a significant position to influence the market.