The Hindu Business Line : DLF did not define carpet area: MRTPC

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DLF did not define carpet area: MRTPC

Our Bureau

New Delhi, Oct 17 The Monopolies and Restrictive Trade Practices Commission (MRTPC) has held that the real estate company DLF Universal Ltd indulged in an unfair trade practice by not disclosing to a complainant the basis of carpet area calculations, thus prejudicing the interest of consumers.

The Commission held that suppression of norms by DLF Ltd in calculating carpet area has a flavour of misrepresentation. An agreement was entered into with DLF Ltd by the complainant for purchase of office space.

The complainant was under the impression that the carpet area would be equal to floor area without including the thickness of the bounding walls. DLF contended that carpet area would be floor area of the shop plus the thickness of its bounding walls. The real estate firm kept this view to itself without disclosing the same to the complainant at the time of agreement.

Fresh demand

The petitioner relied upon the norms recommended by BIS. DLF rejected the idea of applying BIS’s norms as they are not statutory in nature. The Commission pointed, “In such a situation when norms are not defined statutorily, it was all the more necessary for the respondent to define carpet area in terms of the norms understood by it and not to keep the same with itself to surprise the complainant.”

The Commission has directed DLF to raise a fresh demand calculating the carpet area on the basis of the BIS standards.

When contacted a DLF spokesperson said, “We have not received the documents yet. We would certainly study it. We keep our prospective buyers informed about every detail including area and also respect all legal authorities and therefore, we will abide by the MRTPC verdict.”