Jurisdiction - India
India – CCI Dismisses Charges Of Abuse Of Dominant Position Against Eldeco.

12 November, 2013


On October 3, 2013, CCI dismissed a complaint filed by the allottee of a residential complex in Lucknow being developed by Eldeco Housing and Industries Ltd. (‘Eldeco’). The complainant accused Eldeco of dictating the terms of the sale agreement and also acting in an unfair and discriminatory manner. The alleged unfair and/or discriminatory terms of the agreement included: (i) giving the builder the right to reject and refuse the execution of the agreement with the buyers without assigning any reason; and (ii) in case of delay in payment, subjecting the buyers to interest at the rate of 18% per annum, while a delay by the builder would mean an offer of compensation to the buyers in the form of an interest payment of only 5% of the amount paid by the buyers as the cost of the flat. The project was meant to have been completed in three years, but despite the passage of six years, it had still not been completed. Moreover, at the time of final payment, Eldeco demanded extra payment for an unverified additional ‘super area’ of the flat. Finally, the complainant also alleged that Eldeco did not adhere to the registration deed, which required the maintenance of the flats to be handed over to a residents’ welfare association.

CCI identified the relevant market as ‘the provision of services for development and sale of residential apartments in Lucknow’. The presence of several other developers of repute competing vigorously in Lucknow was noted by CCI in its assessment, and on this basis, it concluded that Eldeco was not in a dominant position. Accordingly, the question of abuse of dominant position did not arise and the complaint against Eldeco was dismissed.





For further information, please contact:


Zia Mody, AZB & Partners
[email protected]


Abhijit Joshi, AZB & Partners 
[email protected]

Shuva Mandal, AZB & Partners 
[email protected]


Samir Gandhi, AZB & Partners
[email protected]

Percy Billimoria, AZB & Partners 
[email protected]


Aditya Bhat, AZB & Partners 
[email protected]

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