Competition Commission's Penalty on DLF and Likely Effects on Indian Real Estate Industry

Abstract:

This was the first time that the CCI had imposed a hefty penalty on a real estate company over consumer charges. Experts were divided in their opinion over the likely effects of the order on the Indian real estate industry, which was dominated by small players and marred by lack of transparency along with regulatory bottlenecks. While some anticipated a large-scale consumer movement, followed by many such petitions, others ruled out any such possibility citing unreasonable judicial delays. The case study helps in understanding the impediments to Indian real estate consumers and in debating the likely impact of the CCI's order on the Indian real estate sector.

Issues:

» The general trends and practices in the Indian real estate industry.
» Whether DLF was guilty as charged by its customers.
» The implications of the hefty penalty imposed by the CCI on DLF.

Contents:

Keywords:

Real Estate Sector in India, Competition Commission of India, DLF, The Belaire Project Owners Association, Transparency in Indian Business Dealings, Abusing Dominant Position, Consumer Activism, Relevant Market, Consumerism

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