Competition Commission imposes Rs. 2.40 crore Penalty on DLF Ltd..

The Competition Commission of India (CCI) has slapped Rs. 2.4 crore penalty on real Estate  major DLF Ltd for not complying with its directions to cease and desist from unfair trade practices.

Besides, the fair trade watchdog CCI has said that continued non-compliance would result in penalty of Rs. 1 lakh every day.

Holding that DLF Ltd contravened its directions, CCI has imposed a fine of Rs. 2.40 crore.

The CCI order, dated March 26, 2014 has come on complaint filed by Magnolia Flat Owners Association and one Mr. Rahul Kapoor regarding demand letters issued to them by DLF Ltd, “under the garb of super area.”

The complaint was filed against DLF Ltd Universal Ltd, Haryana Urban Development Authority and the Director Town and Country Planning (DTCP), Haryana.

After looking into the matter, CCI found that DLF Ltd had contravened its order, dated January 31, 2012 by issuing the impugned demand letters dated November 28, 2012.

Besides, the entity "failed to show any cause, much less any reasonable cause, for non-compliance of the aforesaid order".

"No stay on the cease & desist order by the Commission was operating when the non-compliance occurred. The said demand letter has not been withdrawn till date,” the order said.

According to the watchdog CCI, its order has to be complied with by the concerned parties & the same can not be permitted to be opted out by the parties through negotiations.

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