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India – CCI Initiates Investigations Against Two DLF Entities.

17 March, 2015

 


On February 4, 2015 and February 5, 2015, CCI initiated an investigation against DLF Limited (‘DLF’) and DLF Universal Limited (‘DLF Universal’).

The investigation against DLF arose out of information filed by Amit Mittal alleging abuse of a dominant position by DLF in the development and sale of residential units in Gurgaon. Mittal alleged that he had applied for the allotment of an apartment in ‘Regal Gardens at DLF Garden City’ pursuant to which an apartment buyer’s agreement was entered into between him and DLF. This non-negotiable agreement allegedly violated Section 4 of the Act since it was highly unfair, one sided and discriminatory towards buyers.

CCI relied on its orders in such previous cases to hold that DLF was dominant in the relevant market. Further CCI observed that certain terms of the apartment buyer’s agreement did seem onerous and one-sided and clearly depicted how DLF had misused its dominant position to mold the impugned clauses of the agreement in its favour.
Accordingly, CCI concluded that a prima facie case for the contravention of the provisions of Section 4 of the Act had been established and directed DG to cause an investigation into the matter.

In similar vein, the investigation against DLF Universal arose from information filed by Vijay Kapoor alleging abuse of dominant position by DLF Universal in the development and sale of residential units in Gurgaon. Kapoor alleged that he had applied for the allotment of an apartment in ‘Skycourt’ at Sector 86, DLF Garden City, Gurgaon. It was alleged that the agreement entered into between DLF Universal and Kapoor was unfair, discriminatory and one sided, and using which DLF Universal had coaxed huge sums of money from the informant by threatening cancellation of allotment and forfeiture of earnest money. CCI relied on its orders in previous cases against DLF entities to hold that DLF Universal was dominant in the relevant market. Further CCI observed that certain terms of the agreement did seem onerous and one-sided and clearly depicted how DLF had misused its dominant position to mold the impugned clauses of the agreement in its favour.

Accordingly, CCI concluded that a prima facie case for the contravention of the provisions of Section 4 of the Act had been established and directed DG to cause an investigation into the matter.

AZB    

 

For further information, please contact:

 

Zia Mody, AZB & Partners
zia.mody@azbpartners.com

 

Abhijit Joshi, AZB & Partners 
abhijit.joshi@azbpartners.com

Shuva Mandal, AZB & Partners 
shuva.mandal@azbpartners.com

 

Samir Gandhi, AZB & Partners
samir.gandhi@azbpartners.com

Percy Billimoria, AZB & Partners 
percy.billimoria@azbpartners.com

 

Aditya Bhat, AZB & Partners 
aditya.bhat@azbpartners.com

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