Real estate major DLF has been again pulled up by the competition watchdog, Competition Commission of India, for unfair practices in a Gurgaon housing project.

The Commission passed “cease and desist orders” on DLF for abuse of dominant position in The Park Place housing complex project.

“DLF Home Developers Ltd has abused its dominant position and has imposed highly arbitrary, unfair and unreasonable conditions on the apartment allottees of the housing complex, The Park Place,” said CCI in its order on Tuesday.

However, no fresh penalty was imposed on DLF. CCI had earlier this month imposed a fine of Rs 630 crore on the company for abusing its dominant position in the Belair housing project in Gurgaon.

Noting that violations in both the projects were similar, that of section 4 of the Competition Act, 2002, CCI did not find it necessary to impose a fresh penalty on DLF. The earlier penalty amounted to seven per cent of DLF's average annual turnover over the past three years.

Apartment allottees on noticing anomalies in DLF's project implementation had complained to CCI, which directed the Director-General (Investigations) to probe the matter.

The Park Place project in Gurgaon, Haryana was to have 19 floors with 950 apartments and be completed within 30 months. But without informing the allottees, DLF scrapped the project midway and started developing a fresh one in the same place with 29 floors and 1,560 apartments.

As a result of this, the area and facilities for each allottee reduced considerably and they had to wait indefinitely for possession. DLF had been found guilty of similar action in the Belair project as well.

The CCI order has warned DLF to cease and desist from further formulating unfair conditions on home buyers in Gurgaon and directs it to suitably modify unfair conditions on Park Place residents within three months.

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