In a major set back to the country's largest real estate group, DlF, the Competition Appellate Tribunal (Compat) on Monday upheld the Competition Commission of India (CCI) order imposing Rs 630 crore penalty on the realty major for unfair business practices. Reacting to Compat's decision, DlF in its official statement said that it would move to the Supreme Court against the penalty.
Earlier 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.
Compat, in its hearing on Monday upheld CCI decision to impose the fine. DlF had challenged the fair trade watchdog's order at the tribunal, Compat. In its order, CCI had asked DlF to cease and desist from formulating and imposing unfair conditions in its agreements with buyers in Gurgaon.
The statement issued by the realty major said, "the Compat has pronounced the order today upholding certain findings of the earlier orders of CCI. The company is yet to examine the detailed order, therefore, the company at this stage will not be in a position to make any further comments."
The statement further stressed that DlF had successfully delivered Park Place, Belaire and Magnolia projects which were the subject matter of the above appeals. "The company shall be challenging the said order passed by the Compat in the Supreme Court for which Compat has given us 60 days time," DlF added.
"The company has respected in true letter and spirit the customer commitments made by it. In testament thereof, out of over 2,600 total number of apartments, over 2,200 have been handed over, and over 1,800 number of families are already residing therein," the statement added.
Reacting to the Compat order, Belaire Owners Association President Sanjay Bhasin said, "This is a huge victory for all the buyers of real estate in our country who has so far felt completely helpless against dominant real estate companies." This judgement would restore the balance between the real estate developers and property buyers, Bhasin added.