DLF issue contentious; needs to be decided via appeal: CCI

The Competition Commission of India has slapped a Rs 630-crore fine on real estate major DLF for abusing its dominant market position and for imposing unfair conditions on home-buyers. However, the company states these as standard industry practices. (Click HERE to know more)

Calling the issue contentious, R Prasad, member of CCI said it needs to be decided via an appeal. "Standard practice in realty agreements does not mean that the company should abuse its customers. These agreements are always in favour of builders," he told CNBC-TV18 in an exclusive interview. CCI's order asks DLF to amend all its unfair practices. This means that henceforth, DLF shall not have the right to unilaterally cancel a deal. It will have to consult the buyers in case they want to make some changes to the agreement or to the floor layout or to the carpet area. Also, there are times when DLF starts raising money on the basis of flats which have already been allocated to a party, thereby creating a third party liability on these projects