By way of a 28 February 2018 order,(1) the Competition Commission of India (CCI) has imposed a penalty on the Ghaziabad Development Authority (GDA) for abusing its dominant position in the relevant market of "provision of services for development and sale of low cost residential flats under affordable housing schemes for the economically weaker sections in the district of Ghaziabad".
The CCI held that the GDA had violated Section 4(2)(a)(i) of the Competition Act by raising the cost of flats meant for Ghaziabad's economically weaker sections from Rs200,000 in 2008 to Rs750,000 in 2015 without including an enabling provision in either the scheme brochure or the allotment letter.
While imposing a penalty of Rs10,060,794 on the GDA, the CCI also directed it to cease and desist from indulging in abusive conduct in future.(2)
For further information on this topic please contact MM Sharma at Vaish Associates by telephone (+91 11 4249 2525) or email ([email protected]). The Vaish Associates website can be accessed at www.vaishlaw.com.
Endnotes
(1) CCI decision dated 28 February 2018; for the full text, please see the CCI's website.
(2) For further details please see http://competitionlawyer.in/cci-imposes-penalty-of-rs-1-crore-plus-on-gda-for-abuse-of-dominant-position/.
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