Dgcom Buyers & Owners Association, Chennai v. M/s Dlf Ltd., New Delhi & Ors.
Case brief
What is this about?
The Competition Commission determined that the relevant geographic market for residential space is Chennai city, not just the OMR IT Corridor. Finding no prima facie case of dominance, the Commission closed proceedings under Section 26(2) against M/s. DLF Ltd. and its group company.
What did the court decide?
Proceedings under section 26(2) of the Competition Act, 2002 closed due to absence of prima facie case of dominance.
What the court decided
COMPETITION COMMISSION OF INDIA
Case No. 29/2012
27/11/2012
DGCOM Buyers & Owners Association, Chennai Informant Vs. 1) M/s. DLF Ltd., New Delhi OP 1 2) M/s. DLF Southern Homes Pvt.Ltd., Chennai OP 2
Order under section 26(2) of Competition Act, 2002
- The informant in this case is an association of buyers and flat owners in a housing project of OP2. This housing project is situated at Old Mahabalipuram Road, IT Express Corridor, Chennai. The contention of the informant is that OP2 was a group company of OP1 as OP1 was having 51% share in OP2 and OP2 had entered housing market on OMR IT Corridor in December, 2007/January, 2008 in the segment of 2/3 BHK with a basic price of Rs.2800 per sq.ft. as against prevalent market rate of Rs.3000-3300 per sq.ft. The project launched by OP2 was the first biggest project in the entire Chennai city as it offered approx. 3500 units in 42 towers of 19 floors each. It was proposed to be a gated township with an area of 58 acres.
- It is alleged that after nearly 18 months booking of the flats, when the allottees had already paid crores of rupees, OP2 asked the allottees to sign an agreement which contained highly abusive clauses. The abusive sweep of agreement was so deeply entrenched that the buyers could not whisper a word proposing changes in the agreement and were forced to sign on the dotted lines or to lose hefty amount. OP2 rejected the representations against this one sided agreement and throttled the voice of
1
Issues for consideration
3 issues framed by the court
Whether the relevant geographic market for high-rise premium apartments is limited to the OMR IT Corridor or extends to the entire Chennai city.
Whether the Informant successfully established that the Respondents held a dominant position in the relevant market.
Whether a prima facie case for abuse of dominant position under Section 4 was made out against the Respondents.
Parties & counsel
- petitioner
DGCOM Buyers & Owners Association
- respondent
M/s. DLF Ltd.
- respondent
M/s. DLF Southern Homes Pvt.Ltd.
Coram
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