Real estate mess: DDA violated fair trade norms, Competition Commission orders probe

The regulator said that it had taken a prima facie view in an earlier case that DDA was in a dominant position in the relevant market

hidden April 29, 2015 08:36:25 IST
Real estate mess: DDA violated fair trade norms, Competition Commission orders probe

New Delhi - The Competition Commission of India (CCI) has ordered an investigation against the Delhi Development Authority (DDA) for allegedly abusing its dominant position and imposing unfair terms on the buyers of its flats.

Ordering a detailed probe, the fair trade watchdog said it has found "prima facie" evidence that DDA violated competition norms with respect to its Housing Scheme 2010.

In this scheme, DDA had offered 16,000 flats of various sizes in different parts of the national capital.

Real estate mess DDA violated fair trade norms Competition Commission orders probe

Representational image. Reuters

The probe follows preliminary inquiry by the Competition Commission of India (CCI) into a complaint from Sunrise Resident Welfare Association about alleged market abuse by the DDA.

In its order, the regulator said various provisions in the DDA's brochure for the particular Housing Scheme, including promise regarding stage of construction of flats and collection of conversion charges, "prima facie appear to be unfair and therefore abusive" in violation of the competition norms.

CCI's investigation arm, Director General (DG), would investigate the matter.

As per the order, the size and resources of DDA are huge and being the statutory authority as per DDA Act, 1957 the consumers in the relevant market are completely dependent on it.

The regulator said that it had taken a prima facie view in an earlier case that DDA was in a dominant position in the relevant market which is considered 'provision of service for sale and distribution of residential flats in the territory of Delhi'.

PTI

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