The Competition Commission has closed the case against Taneja Developers and Infrastructure (TDI) related to allegations that the company was abusing its dominant position in the real estate segment in Mohali.

A non-resident Indian Deepa Narula had alleged that TDI abused its dominant position in the market of Mohali by withholding Rs 18.05 lakh deposit made against booking of a commercial plot.

Stating that TDI was not a dominant player in the relevant market, the Commission in its order dated September 6 said it was closing the case.

“On a careful consideration of the entire matter, the Commission is of the view that based on the facts of the case as stated in the information, the dominance of TDI in the relevant market does not get established,” it noted.

The Commission observed that prima facie no case was made out for directing the Director General (DG) to conduct investigation into the matter.

Meanwhile, the order said that section 4 of the Competition Act which deals with abuse of dominance for enterprises in India was notified in May 2009. “Thus acts of abuse by dominant enterprises prior to the period of May 2009 cannot be considered by the Commission and is beyond the jurisdiction of the Commission,” it added.

However, in a dissenting order on the case, Commission Member R Prasad said “there exists a prima facie case to direct the Director General to cause an investigation to be made into the matter“.

Narula had said that at the time of booking, TDI was the sole developer with the unique plan of developing a residential-cum-commercial project in Mohali.

The petitioner had made the booking in April 2006 and paid the developer Rs 18.05 lakh till May 2008 but has not received the allotment till date.

“It is stated by the informant (Deepa Narula) that on payment of booking amount and subsequent instalments, informant became captured customer with little choice of exit, thus opposite party (TDI) should be considered as a dominant enterprise,” the order noted.

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