Fair trade regulator CCI on Wednesday dismissed a complaint alleging unfair and discriminatory trade practices by Indiabulls Housing Finance regarding loan agreement.
Disposing of the complaint, the regulator said prima facie the case does not contravene the provisions of Sections 3 and 4 of the Competition Act.
Section 3 and 4 pertain to anti-competitive agreement and abuse of dominant market position, respectively.
The ruling came on a complaint filed by an Ahmedabad-based group of four individuals who had availed housing loan worth over Rs 47 lakh from Indiabulls in 2008.
The complainant alleged that Indiabulls arbitrarily increased the interest rate from 16 per cent to 22.75 per cent and even after paying over Rs 73 lakh, the finance company kept the principal amount due at over Rs 44 lakh.
Besides, they alleged that the company is charging the highest possible rate of interest from them while the rate of interest charged to other consumers is different and substantially less.
By doing so, the company contravened Section 3 and 4 of Competition Act, the complainant alleged.
For the case, the Competition Commission of India (CCI) considered the “provision of loan against property in India” as the relevant market and did not find Indiabulls in a dominant position.
Therefore, in the absence of dominance, the issue of abuse of dominant position against Indiabulls does not survive, CCI said in an eight-page order.
Regarding anti-competitive agreement, the CCI said the complainant “have not suggested existence of any agreement, as envisaged in Section 3 of the Act.”
Accordingly, the fair trade regulator dismissed the complaint after finding no contravention of the Competition Act.