The Impact of CCI’s order on Indian realty firms
Tapas Misra and Ashu Kansal / New Delhi Nov 11, 2011, 13:40 IST
The recent judgment of the Competition Commission of India (“CCI”) in Belaire Owner’s Association vs DLF Limited has created ripples in the real estate sector. The news has come as another dampener for a sector that is already reeling under the impact of hike in interest rates, dwindling buyers and a looming recession in the US. However, the judgment has come as a shot in the arm for home buyers, who were, till now, at the mercy of builders due to their inordinate delay in executing projects and the one-sided arbitrary clauses used by realty firms. In an unprecedented order in terms of scope and scale of punishment, the anti-monopoly regulator had imposed on DLF Ltd a hefty penalty of 7 per cent of the average of the turnover for its last three preceding financial years