Jaiprakash Associates slapped with Rs 13.82 crore fine by CCI for violating norms
BusinessToday.In August 13, 2019
Competition watchdog Competition Commission of India has slapped Jaiprakash Associates Ltd with a fine of Rs 13.82 crore for violating Competition Act provisions. The CCI said that the real estate conglomerate abused its dominant position in the market by imposing unfair conditions on buyers in Noida and Greater Noida areas.
The CCI said that it found that the terms and conditions imposed by JAL were unfavourable to the consumers. "The conduct of JAL, such as collecting money/charges from the buyers without delivering the residential/dwelling unit on time, adding additional construction and amending /altering the layout plans, imposition of various charges, right to raise finance from any bank/financial institution/body corporate without consulting buyers was held to be abusive," said CCI in a statement.
The CCI mentioned in its statement that the penalty was calculated at 5 per cent of the average revenue of JAL from sale of independent residential units in the relevant market. A cease and desist order has also been issued by CCI.
The ruling came on a complaint filed by one Naveen Kataria who had booked a villa at Jaypee Greens in Greater Noida, Uttar Pradesh, in 2011.
In February 2019, the complainant informed the CCI that she did not wish to pursue the instant case, since all the pending disputes with the firm have been settled. Under the Competition Act, complaints filed under a certain section cannot be withdrawn. It was alleged that conditions in Provisional Allotment Letter (PAL) were unfair, one-sided and loaded in the favour of the company.
In 2015, the regulator ordered the Director General (DG), its investigation arm, to conduct a detailed probe into the matter.