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The Competition Commission of India (CCI), the anti-trust watchdog, on Wednesday imposed a penalty of ₹1,00,60,794 on Ghaziabad Development Authority (GDA) for abusing its position in one of its residential housing schemes. It has also issued a cease and desist order against GDA.
CCI found GDA to be in contravention of the provisions of Section 4 (1) read with Section 4(2)(a)(i) of the Competition Act, 2002 for abuse of its dominant position by imposing unfair condition on the allottees who are from economically weaker sections in its Pratap Vihar residential housing scheme.
The anti-trust watchdog stated that the increase in the price of economically weaker section flats from the initial price of ₹2 lakh in the year 2008 to ₹7 lakh in 2015 was done in an arbitrary and unilateral manner. It also found that increase in the price was done without any enabling provision either in the brochure of the scheme or allotment letter.
It also mentioned that the condition for levying penal interest at 10.5 per cent yearly in case of delay in the payment of the quarterly instalments by the allottees without a corresponding provision for GDA in case of delay in giving possession of the flats is abusive, being one-sided and unfair.
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