Competition Appellate Tribunal upheld 630 crore rupees penalty on DLF

May 20, 2014 12:12 IST

The Competition Appellate Tribunal (Compat) on 19 May 2014 upheld a penalty of 630 crore rupees imposed on real estate firm DLF by the Competition Commission of India (CCI).  DLF, as a result, will have to pay the penalty of 630 crore rupees levied by the CCI along with 9 per cent interest.

This is the first major ruling of CCI in which its order has been upheld by the Compat. The Compat has given 60 days time to the company for the same.

Earlier on 12 August 2011, CCI had imposed the penalty on DLF for abusing its dominant market position with regard to a residential society in Gurgaon. It slapped the penalty on DLF for violating Section 4 of the Competition Act, 2002.

The CCI slapped the penalty following complaints of flat buyer association of two DLF projects in Gurgaon namely DLF Park Palace and The Belaire. The buyers accused DLF for delay in the possession of the apartments due to change in the plan to accommodate more floors.

The order of Compat has sent a strong signal to builders across the country on adhering to the rulebook on super-built and common areas in residential complexes.

Competition Appellate Tribunal (Compat)
The Competition Appellate Tribunal (Compat) is a statutory organization headquartered in New Delhi was established under the provisions of the Competition Act, 2002. It was constituted on 15 May 2009 to hear and dispose appeals against any direction issued or decision made or order passed by the Competition Commission of India.

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Dr. Justice Arijit Pasayat, former Judge of Supreme Court, has been appointed as the First Chairperson of the Appellate Tribunal. Besides, the Chairperson, the Appellate Tribunal shall consist of not more than two Members to be appointed by the Central Government. The Chairperson of the Appellate Tribunal shall be a person, who is, or has been a Judge of the Supreme Court or the Chief Justice of a High Court.

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