Competition Commission of India to investigate the matter involving Delhi Development Authority on alleged violation of Competition Act

Competition Commission of India (CCI) has ordered investigation by its Director General in the matter involving Delhi Development Authority (DDA) in respect of allegations regarding violation of provisions of Competition Act by DDA. The order has been issued under Section 26(1) of the Competition Act, 2002 in response to the information filed by Dr. Adla Satya Narayan Rao against DDA alleging contravention of Section 4 of the Competition Act.

2. The informant alleged that he had applied for the DDA Housing Scheme 2010 on 13.12.2010 by paying Rs.1,50,000/-. Subsequently, he was allotted a flat in Vasant Kunj and he paid an amount of Rs.91,28,082/- (inclusive of conveyance deed) to DDA.

3. The informant has alleged that in clause 1 of the Scheme 2010, DDA announced that all flats were complete and ready for occupation whereas the ground reality was different. Further, even though DDA received full payment from allottees, the flats were nowhere close to completion. Dr. Rao also alleged that the clauses 11, 12 and 14 of the DDA Scheme were one sided and heavily loaded in favour of the DDA.

4. After hearing the informant and DDA, CCI came to a conclusion that a prima facie case has been made for investigation of allegations by informant for infringement of the provisions of the Act.

5. Accordingly, the Director General of CCI shall investigate the matter and the report shall be submitted within 60 days from the receipt of the order.