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SC ordered DLF to pay 630 crore rupees fine imposed by CCI

Aug 28, 2014 12:44 IST

The Supreme Court of India on 27 August 2014 directed the real estate developer DLF Ltd to pay a fine of 630 crore rupees that was imposed on it by the Competition Commission of India (CCI). CCI had imposed a fine on DLF for alleged unfair business practices.

SC bench comprising of Justice Ranjana Prakash Desai and Justice NV Ramana in its interim order asked DLF to pay an initial amount of 50 crore rupees and 25 crore rupees in interest within three weeks. Rest of the penalty should be paid within three months.


Earlier, DLF moved to Supreme Court against the order of COMPAT upholding the 630 crore rupees fine imposed by the CCI.

Background
Competition Appellate Tribunal (COMPAT) on 19 May 2014 upheld a penalty of 630 crore on real estate firm DLF that was imposed by the Competition Commission of India (CCI).  Before COMPAT, the CCI on 12 August 2011 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 penalty was imposed on DLF initially by CCI on the complaint of apartment owners in the Belaire project in Gurgaon. They alleged in their complaint filed in May 2010 to CCI said that as per the plan each of the towers in the project were originally planned to have 19 floors but the builder constructed 29 floors in all the buildings. This construction of 29 floors meant that areas and facilities got compressed.

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