Compat verdict on DLF's penalty case likely to be delayed

DLF's case with the Competition Appellate Tribunal (Compat) is unlikely to see a speedy conclusion because a verdict is likely to be delayed for a very long time, reports CNBC-TV18. Sources say DLF's case in Compat could be reheard because Compat chairman Arijit Pasayat retired on 9 May.

On 12 August last year, the Competition Commission of India slapped DLF with a penalty of Rs 630 crore for alleged abuse of its dominant position and passed a 'cease and desist' order over unfair conditions imposed by DLF on buyers of its flats. Then late August,CCI passed another separate order in which it again cautioned DLF not to misuse its dominant position but did not impose any penalty.

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DLF, in turn, challenged the CCI directive on various grounds to Compat, including the jurisdiction of the case, the basis for determining relevant market and dominant position, as well as not being served with show-cause notices before the CCI penalty was announced.

The penalty was imposed following an inquiry based on complaints filed by the flat buyer associations' of two separate DLF projects in Gurgaon, DLF Park Palace and The Belaire. The associations complained that there were delays in the projects and that DLF had increased the number of floors from what was initially planned, among other things.

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Pasayat had already noted that the case would have to be postponed until a new chairman is appointed. Fresh arguments could be heard from June. Sources say retired Supreme Court Judge VS Sirpurkar is currently the front runner for the post of Compat chairman. The Chief Justice of India had proposed Sirpurkar's name for chairman in April.

A DLF spokesperson declined to comment since the matter is sub-judice, CNBC-TV18 said.

Reporting by Ronojoy Banerjee