Fair Trade Regulator Rejects Complaint Against DLF
New Delhi: The Competition Commission of India has dismissed allegations that DLF indulged in unfair business ways with regard to sale of a residential plot in Uttar Pradesh after finding that the realty major was not a dominant player in the relevant market.
The matter pertained to allotment of a residential plot at the Garden City project at a village in Lucknow district and it was alleged that the company imposed unfair terms and conditions.
Earlier also, DLF had come under the scanner of the Commission, which last year ordered at least two detailed probes against the company.
In the present case to assess whether the company violated competition norms, the watchdog considered “the provision of services for development and sale of residential plots in Lucknow” as the relevant market.
Dismissing the complaint, the watchdog said since DLF is not in a dominant position in the relevant market, “the question of abuse of a dominant position by it within the meaning of the provisions of Section 4 of the (Competition) Act does not arise”.
Section 4 relates to abuse of dominant position.
Citing the information available in the public domain, CCI said there are other players offering similar services in the relevant market with projects of varying magnitudes and comparable sizes and resources as that of DLF.
“With such renowned builders in the relevant market, it does not appear that opposite party (DLF) enjoys a position of strength which enables it to operate independently of competitive forces prevailing in the relevant market or to affect its competitors or consumers or the relevant market in its favour,” the regulator said.
In its order dated July 5, CCI also said the allegation of anti-competitive practices do not hold any ground as the information does not disclose any kind of agreement which can be termed as anti-competitive in terms of the Competition Act. Non-metros include Ahmedabad, Bangalore, Jaipur, Kanpur, Kochi and Lucknow.