Section 4 of Competition Act
Pankaj Agarwal & Anr. v.DLF Gurgaon Home Developers- In this case, the Informants alleged contravention of Section 4 of the Competition Act, 2000 on the grounds of imposition of unfair and onerous terms and conditions and abuse of dominant position by the builder. The acts by which the Informants were aggrieved included allotment of back and back parking on additional payment of additional amount, non- transparent calculation of advance payment rebate, raising floors without any intimation, inordinate delay in possession and completion etc.
In view of the acts of the builder, the CCI was of the view that the builder (OP) held a position of dominance in the relevant market of services of developer/ builder and a cursory glance atthe terms and conditions of the Buyer's Agreement showed how heavily loaded the Buyers' Agreement was in favour of DLF Developers and against the buyer.
The Commission further held that under normal market scenario, a seller would be wary of including such one-sided and biased clauses in its agreements with consumers. The CCI regarded the agreement in total disregard to consumer right. With respect to the increase in floors, the Commission stated that it was the duty of DLF Developers to disclose that it proposed to increase the number of floors and apartments, so that the allottees could have taken valid objections to it. Thus, the Commission upheld the act of DLF Developers as abuse of dominant position under the Act.
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