Competition panel spares DLF

DLF is just one of the real estate developers and others provide choice

GN Bureau | August 27, 2015


#dlf   #developer   #builder   #stock   #cci  

The Competition Commission of India (CCI) allegations of anti-competitive practices made against realty major DLF. This clearance resulted in its stock jumping to nearly 5% on Thursday. After opening at Rs 113.55, the stock climbed to a day's high of Rs 116.05, up 4.88% from Wednesday's close.

The latest complaint pertained to apartments booked in the residential project DLF Capital Greens, Phase III, in the national capital. The watchdog has dismissed the allegations after finding that prima-facie there was no violation of competition norms, especially since DLF is not in a dominant position in the relevant market.

According to CCI, the complainants were primarily aggrieved with the alleged abusive conduct of DLF in regards to making false representations regarding delivery schedule, concealing information relating to requisite approvals/ sanctions and selling of parking spaces, among others.

The regulator noted that in the geographical region of Delhi, DLF is just one of the real estate developers engaged in the provision of services relating to development and sale of residential apartment.

"There are many other real estate developers operating in Delhi who are engaged in the provision of services relating to the development and sale of similar residential dwelling units. Some of such developers include Delhi Development Authority, Ansal API, Umang Realtech, Emaar Group, CGHS Group, Parsvnath, etc.

"These developers appear to pose competitive constraints to DLF in the relevant market," the order said.

Presence of other real estate developers in the relevant market indicates that the informants (complainants) were not dependent upon DLF for purchasing residential apartments, it added.

"Since DLF is not found to be in a dominant position, the question of its conduct being abusive does not arise," CCI said in its order. The complaint was filed by Ess Cee Securities and Signature Securities.

DLF is already under the scanner of the Competition Commission of India (CCI), which earlier this year ordered two separate probes against the realty company. DLF was also fined Rs 630 crore by CCI in another case in August 2011, which was later set aside by the Competition Appellate Tribunal after which the regulator approached the supreme court.

Comments

 

Other News

Improving livelihood with financial access is the task ahead

“Demonetisation has created an entire system of digitisation and financial inclusion,” said PK Gupta, managing director (Retail and Digital Banking), State Bank of India, at the launch of the Governance Now India Financial Inclusion Case Book in Mumbai on Friday. He further stated though there

How Bhutan is enuring food security

When Bhupen Gurung from the Royal University of Bhutan told the audience at the TERI School of Advanced Studies, New Delhi, about dropping levels of poverty in Bhutan, many public policy academicians were left intrigued. Coming from the ‘Land of Happiness’ (Bhutan ranked 97 among 155 countr

Uncivil servants

An IPS officer of Tamil Nadu cadre holding the post of assistant superintendent of police was caught cheating, using high-tech gadgets, while appearing in the IAS examination in October, as was widely reported in the media. The case has shaken the conscience of the enlightened citizenry and shows the rot t

Manufacturing will remain dark horse for economy: Niti Aayog expert

Manufacturing will remain the dark horse for the Indian economy, especially as labour-intensive industries shift from China, writes Sukhgeet Kaur, director, project appraisal and management division, Niti Aayog in an official

The un-importance of being Pravin Togadia

Vishwa Hindu Parishad (VHP) working president Pravin Togadia is in the news after a long time. This week, Togadia went `missing` for an entire day as the Gujarat and Rajasthan police were on the lookout for him, arrest warrant in hand. Togadia was later brought to a hospital in an unconscious state. At a p

Confused signals

Of late, there have been some anxious moments for broadcasters and no one knows where it’s been coming from, and why it’s happening. For starters, the ministry of information and broadcasting is the licensor for TV channels, in two categories: (i) news and current affairs (&lsquo

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter