DLF penalised by CCI (competition commission of India)

The realty giant DLF has been slapped with penalty of Rs630 crores by the CCI (competition commission of India).DLF was charged for disregarding consumer interests , abusing its domninant market position and for engaging itself in unfair means of practices. One issue that was raised after this case was that how many times can CCI act? Many small and midsized property developers in India make changes in the dwelling designs without the consent of the buyer. They delay projects and break the promise made to the buyers. The developers themselves say that the dilation of projects causes rise in prices. Second issue of concern is that DLF’s penalty will benefit the national treasury and not the customers.

The contracts and documents which are in violation of consumer rights or any other law should be changed by the respective company, this is one the factors mentioned by the CCI. A buyer may approach the competition appellate tribunal and can claim his compensation. The consumers’ courts dealing with these issues witness many fights between the consumers and the dealer. The competition commission is beneficial from buyers’ point of view. Exerts are expecting that the real estate sector will feel the heat of this new order issued by the CCI. They also say that ruling of CCI is indeed a very good example as it alarms the builders that the interest of the customer should not be ignored.