DLF expresses inability to pay Rs 630 penalty imposed by COMPAT

DLF Ltd. | Construction - Real Estate | Construction & Infrastructure | BSE: 532868 | NSE: DLF

26 Nov 2014 Evaluate

DLF, the country’s largest realty firm, has made an appeal to the Supreme Court, expressing its inability to meet the court-fixed deadline, i.e., November 26 to deposit Rs 630 crore as a pre-condition to entertain its appeal against the Competition Appellate Tribunal's (Compat's) decision of imposing the hefty penalty.

The company has sought more time from SC, claiming that it was in serious financial difficulty, which was aggravated by Sebi's decision to ban the company and six of its senior officials from accessing the capital markets for three years for AN alleged non-disclosure in the 2007 IPO filing.

Back in May, Compat upheld three orders dated August 12, 2011, August 29, 2011, and January 31, 2012 of Competition Commission of India (CCI), which had imposed the penalty equivalent to 7% of DLF's turnover, after finding it guilty of abusing its dominant position to discomfit flat owners, both financially and in giving possession, in three Gurgaon apartments.

Post this, bench of Justices Ranjana P Desai and N V Ramana, in an order had on August 27 directed the company to deposit the fine amount in the SC registry, to which DLF had sought six months' time to comply with the direction. But, the bench directed the company to deposit Rs 50 crore within three weeks and the rest Rs 580 crore in the next three months, which was before November 27.