New bench may fast-track hearing on DLF row over CCI fine

As one would recall following the retirement of former Compat chairman Justice Arijit Pasayat last month, it was decided that a new bench would re-hear the case led by the newly appointed chairman Justice VS Sirpurkar. This meant that the final Compat order on the much-awaited case would be delayed.

Sources say that the DLF case would now be among the first to be heard when Compat reopens on June 25 after the short summer break.

On 12 August last year, the Competition Commission of India slapped DLF with a penalty of Rs 630 crore for alleged abuse of its dominant position and passed a 'cease and desist' order over unfair conditions imposed by DLF on buyers of its flats. Then late August,CCI passed another separate order in which it again cautioned DLF not to misuse its dominant position but did not impose any penalty.

DLF, in turn, challenged the CCI directive on various grounds to Compat, including the jurisdiction of the case, the basis for determining relevant market and dominant position, as well as not being served with show-cause notices before the CCI penalty was announced.

The penalty was imposed following an inquiry based on complaints filed by the flat buyer associations' of two separate DLF projects in Gurgaon, DLF Park Palace and The Belaire. The associations complained that there were delays in the projects and that DLF had increased the number of floors from what was initially planned, among other things.