The Supreme Court on Wednesday ordered real estate major DlF to deposit Rs 630 crore fine slapped on it by the Competition Commission of India (CCI) for resorting to alleged unfair business practices.
The amount will be deposited within three months with its Court Registry pending the outcome of an appeal filed by DlF challenging the November 9, 2011 Commission order and a subsequent decision by the CCI Appellate Tribunal on May 19 upholding the penalty. The interim order passed by Justices Ranjana P Desai and NV Ramana said, "We direct the appellant (DlF) to deposit the amount of Rs 630 crore in this court," after it began hearing on DlF's appeal. Of this, the first installment of Rs 50 crore will be deposited in Court within three weeks, bench added.
The CCI had also fixed a nine per cent interest to be paid on the fine. The Court asked DlF to give an undertaking that the said interest would be paid in the event the appeal was finally dismissed. DlF requested for six months time to deposit the fine but Court refused to alter its order. The CCI had acted on a complaint by Belaire Owners' Association in Gurgaon who accused DlF of making false promises through its advertisements and misleading gullible customers.
DlF stated on Wednesday that it would comply with the direction of the Supreme Court to deposit the Rs 630 crore penalty imposed by the competition watchdog CCI and said it remained confident about the merits of its case. In a filing to the BSE, DlF said: "The copy of the order passed today by the Supreme Court is still awaited. DlF will take all steps to comply with the directions of the Supreme Court and remains confident of the merits of its case."
The company further said that its appeal against the order of COMPAT has been admitted today by the Supreme Court. "The Supreme Court directed DlF to deposit Rs 630 crore in an interest-bearing fixed deposit with the Court for the duration of the appeal proceedings.
"The amount is to be deposited within a period of three months, of which Rs 50 crore is to be deposited within three weeks. The entire deposit is subject to the final decision of the Supreme Court," DlF said in the filing. In August 2011, the CCI had found DlF violating fair trade norms and imposed a fine of Rs 630 crore on it following a complaint by a Belaire Owners' Association in Gurgaon. It was in May 2010 that the buyer's association had complained against DlF.
Reacting to the SC direction, shares of DlF fell by 4.44 per cent to settle at Rs 183.05 on the BSE. In intra-day, it tumbled 5.32 per cent to Rs 181.35. At the NSE, the stock slipped 4.49 per cent to end at Rs 183.05