Competition Watchdog Imposes Penalty of 1 Crore on Ghaziabad Development Authority

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March 01, 2018

The Competition Commission of India (CCI) yesterday imposed a penalty of Rs. 1,00,60,794/- on Ghaziabad Development Authority (GDA) for abuse of its Dominant Position under Section 4 of the Competition Act, 2002 .

Also read What is Abuse of Dominant Position under Competition Act?

The CCI has found GDA to be in contravention of the provisions of Section 4(1) read with Section 4(2)(a)(i) of the Competition Act, 2002 for abuse of its dominant position by imposing unfair condition on the allottees from economically weaker sections under its Pratap Vihar Residential Housing Scheme.

CCI held that conduct of GDA in raising the price of EWS (Economically Weaker Sections) flats from the initial price of Rs.2,00,000/- in 2008 to Rs.7,00,000/- in 2015 under the said Scheme without any enabling provision either in the Brochure of the Scheme or allotment letter is arbitrary and unilateral.

The CCI also held that the condition for levying penal interest @ 10.5% per annum in case of delay in the payment of the quarterly installments by the allottees without a corresponding provision for GDA in case delay of in giving possession of the flats was abusive, being one sided and unfair. Therefore, CCI held that such conduct of GDA is in violation of Section 4(2)(a)(i) of the Act. Resultantly, CCI has imposed a penalty of Rs. 1,00,60,794/- (Rupees one crore sixty thousand seven hundred ninety four only) on GDA for the said anti-competitive conduct. Besides, a Cease and Desist Order was also issued against GDA.

The complete order of CCI in the case can be accessed here.

Also read CCI Slaps Fine of Rs. 135 Crore on Google for Anti-Trust Issues