Realty major, DLF has been imposed Rs 600 crore penalty by competition watchdog CCI for abusing its dominant market position. As DLF has been proven guilty of violating section 4(2) of the Competition Act, 2002, the penalty, which amounts to 7 percent of the company's average annual turnover of last three years, was imposed on it.
A company violates Section 4(2) (a) of the Competition Act when it directly or indirectly imposes unfair or discriminatory conditions or prices with respect to the purchase or sale of goods or services. Last year in May, on the basis of complaints by some people who booked flats in DLF projects, the CCI had referred the matter for a probe by the Director General (Investigations).
According to one such complaint, in 2009, DLF had promised to complete its residential project in Gurgaon, called Belaire, but buyers are yet to get possession. In addition, DLF has increased the number of floors in the apartment complex from the original figure given to buyers. This led to the number of apartments in Belaire increasing to 564 from 384.
The company’s net profit for the quarter ended June 30, 2011 declined by 54.83% at Rs 92.64 crore as compared to Rs 205.10 crore for the corresponding quarter last year. Its total income has grown by 3.74% at Rs 845.00 crore for the quarter under review from Rs 814.52 crore for the same quarter last year.