DLF takes CCI head-on, says won't alter buyers‘ pact soon

DLF sources indicate that there is no need to yet implement the Competition Commission of India (CCI) order & modify buyers' pact as the right to levy a penalty lies with Competition Appellate Tribunal (COMPAT).

CNBC-TV18's Nayantara Rai says that it was under COMPAT's direction that CCI had recommended modification of the clauses in the agreement which it found to be dominant and abusive. The big question facing buyers is to know if CCI can be called a realty regulator. Also read: DLF drops 2% on CCI order on buyers' agreements Speaking to CNBC-TV18, sources in DLF indicated that they did not need to immediately implement that order because the COMPAT will have the final say. It may be noted that in 2011, CCI had slapped DLF with Rs 630 crore penalty order. Now DLF seems to be questioning CCI's authority to bring out model buyer's agreement for Pan India purposes and believes it has no jurisdiction to do so as it is not a real estate regulator.  All these arguments will be discussed in the COMPAT when it meets again on January 9. DLF is objecting to the clause which states whatever penalty DLF slaps on its buyers for delayed payments, it should pay a similar amount in case of project delays. DLF's point of view is that has not worked globally from real estate companies to insurance to banks. CCI has also ordered that DLF can no longer charge for parking slot. DLF says it had already stopped doing so. Talking about sharing of licenses, plans etc with buyers, DLF says no state statute suggests so.