CCI not a blanket decision for all real estate firms: ELP

The Competition Commission of India (CCI) alleged that DLF misused its dominant market position and imposed unfair conditions on home-buyers. The CCI ordered a penalty of Rs 630-crore to the real estate major.

In an interview to CNBC-TV18, Suhail Nathani, partner of Economic Laws Practice (ELP) shares his view on whether this judgement be passed in the court of law n what will be the implications on other real estate developers.

Here is the edited transcript of the interview. Also watch the accompanying video.

Q: This is a definition of monopoly on which the CCI has adopted. This definition has been challenged because it has been defined as monopoly in a small area. Will this order pass if it is appealed in the courts?

A: The issue here is, whether DLF is dominant in the market and has abused the dominance. To define the market, CCI has used the product market as well as the geographical market. They said that the product market is high end apartments and geographically, it is in the Gurgaon area.

Combining these two, they held that it is a monopoly and has abused its dominance. In light of this definition, this would be one of the first issues to be challenged. Therefore, issue like whether a home-buyer from Delhi look in Gurgaon or Noida are some of the issues which will come up within the appeal.

Q: Does the CCI also have jurisdiction over unfair trade practices? Would the decision also be that DLF was in a superior position compared to its myriad small buyers and therefore was in a position to impose dominance? Will the order pass muster?

A: It