The Competition Commission of India (CCI) has found Ghaziabad Development Authority (GDA) liable for abusing its dominant position for imposing an unfair condition on the allottees from economically weaker sections in its Pratap Vihar Residential Housing Scheme. A penalty of  INR 1,00,60,794 has been imposed on the authority under the provisions of Section 4(1) read with Section 4(2)(a) (i) of the Competition Act, 2002.

The CCI was of the view that the conduct of the GDA in raising the price of the EWS flats from the initial price without any intimation to the buyer amounted to an abuse of dominant position by the GDA in the relevant market. The Commission observed that the consumers who belong to EWS have been made to suffer because of such abusive conduct of GDA.

The CCI has been the saviour of consumers and flat owners in the real estate sector since its early days and this order also is a victory in the same area. Though on a purely legal point it is important to note that the DG report also stated that the conduct of GDA amounts unfair pricing of Section 4(2)(a)(ii) of the Act, but the CCI found no contravention of the same.

For a full copy of the order please visit: http://www.cci.gov.in/orders-commission/102