CCI imposes Rs.1,00,60,794/- penalty on Ghaziabad Development Authority for imposing unfair conditions on economically weaker section allottees of Housing Scheme

The Competition Fee of India (CCI) has uncovered GDA to be in contravention of the provisions of Area 4(1) examine with Area 4(2)(a)(i) of the Competition Act, 2002 for abuse of its dominant position by imposing unfair problem on the allottees from  economically weaker sections in its Pratap Vihar Household Housing Scheme.

CCI held that conduct of GDA in boosting the price tag of EWS flats from the preliminary price tag of Rs.2,00,000/- in 2008 to Rs.7,00,000/- in 2015 under the said Scheme with out any enabling provision either in the Brochure of the Scheme or allotment letter is arbitrary and unilateral. Further, the problem for levying penal curiosity @ 10.5% for each annum in situation of hold off in the payment of the quarterly instalments by the allottees with out a corresponding provision for GDA in situation hold off of in offering possession of the flats is abusive, becoming just one sided and unfair. For that reason, CCI held that this kind of conduct of GDA is in violation of Area 4(2)(a)(i) of the Act. Resultantly, CCI has imposed a penalty of Rs. 1,00,60,794/- (Rupees just one crore sixty thousand seven hundred ninety four only) on GDA for the explained anti-competitive conduct. Moreover, a Stop and Desist Get was also issued against GDA.

The Get was handed on 28.02.2018 in Case No. 86 of 2016 and a copy thereof has been uploaded on the web site of CCI at www.cci.gov.in.

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