Post-DLF: Developers and competition law in India

By Ramya Hariharan and Arka Majumdar, Udwadia Udeshi & Argus Partners
0
1794
LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link

In an unprecedented order, the Competition Commission of India (CCI) in August 2011, in the case of Belaire Owners’ Association v DLF Limited and Huda, imposed a penalty of ₹6.3 billion (US$115 million) on DLF on the ground that DLF had abused its dominant position by requiring flat owners to comply with onerous and unfair terms in its apartment buyer’s agreement.

Whilst DLF was directed to suitably modify the unfair conditions itself, DLF petitioned the Competition Appellate Tribunal (COMPAT) to direct the CCI to provide specific direction as to the extent and the manner of modification required. On being so directed by COMPAT, the CCI passed a detailed supplemental order on 3 January 2013, laying down a general framework for the agreement to be executed by a real estate developer with the buyers of flats.

First order’s impact

The impact of the 2011 DLF order was immediately felt when the CCI was flooded with accusations against various real estate developers alleging anti-competitive practice based on clauses in the flat buyer’s agreement similar to the ones held to be onerous in the DLF order.

You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.

For group subscribers, please click here to access.
Interested in group subscription? Please contact us.

你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章,欢迎成为我们的订阅会员成为我们的订阅会员

已有集团订阅,可点击此处继续浏览。
如对集团订阅感兴趣,请联络我们

Udwadia Udeshi & Argus Partners is a full-service law firm with offices in Mumbai, Delhi, Bangalore, Kolkata and Chennai. Ramya Hariharan is a partner and Arka Majumdar is a senior associate at the firm.

Udwadia_Udeshi_&_Argus_Partners_logo

Udwadia Udeshi & Argus Partners

1st Floor, Elphinstone House

17 Murzban Road, Mumbai – 400 001

Tel: +91 22 2200 1400

Fax: + 91 22 2200 1411

Other offices: Delhi, Bangalore, Kolkata and Chennai

Email: uuargusknowledgecentre@uuargus.com

LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link