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TMI Blog2025 (4) TMI 1118X X X X Extracts X X X X X X X X Extracts X X X X ..... present petitions inter-alia seeks to assail an order dated 19.06.2024 passed by the respondent no.1/Competition Commission of India (CCI) in case No.40 of 2017, whereby, the application filed by the petitioners under Section 42 of the Competition Act, 2002 (hereinafter 'Competition Act') to initiate investigation against respondent no.2/the Department of Town and Country Planning, Haryana (DTCP) was dismissed by the respondent no.1. 4. At the outset, it is noticed that the factual matrix is identical in all these petitions and these petitions are also predicated on identical grounds. In the above circumstances, it is considered apposite to dispose of the said petitions by way of a common order. 5. The petitioner in W.P.(C) 10948/2024 is the Confederation of Real Estate Developers Association of India-NCR (CREDAI-NCR), an organisation representing real estate developers in NCR region (Gurugram, Faridabad, Sohna, Dharuhera, NH1 Belt i.e., Kundli, Sonipat, Panipat, Noida, Greater Noida, Yamuna Expressway, Ghaziabad, Bhiwadi, Neemrana and adjoining regions) and the petitioner in W.P(C) 3705/2025 is a Real Estate Developer and a member of CREDAI-NCR. 6. Whereas respondent no.1 is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ates that the payment of EDC amount may be made by the developer either in lump- sum within 30 days from the grant of license or in 8/10 equal six monthly instalments of 12.5% /10% of which the first instalment shall be payable within a period of 30 days from the date of grant of license. Further, it is contained in the terms that where EDC amount is being paid in instalments, the unpaid amount after the payment of first instalment would carry an interest of 12% per annum and in case of any delay in payments of instalments on the due date, an additional penal interest of 3% per annum would be levied, making the total payable interest as 15% per annum. In the instant case, most of the developers have exercised the instalment payment option whereby they are paying interest on the unpaid portion. In case of delay in payment of instalments, the OPs are charging penal interest also. On the other hand, no external development work has been commenced by the OPs towards providing basic facilities for the area included in the Sohna Master Plan. 21. Apart from that, it has been brought to the notice of the Commission during the hearing that the developers have to get their license renewed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion finds it appropriate and necessary to intervene at this stage to safeguard the members of the Informant against the irreparable and irretrievable losses that may be caused to them. 24. Regarding the scope of intervention in the form of interim relief, it is observed that the Hon'ble Supreme Court in Dalpat Kumar (supra), has explained as under: "The phrases "prima facie case"; "balance of convenience" and "irreparable loss" are not rhetoric phrases for incantation, but words of width and elasticity, to meet myriad situations presented by man's ingenuity in given facts and circumstances, but always is hedged with sound exercise of judicial discretion to meet the ends of justice." 25. In view of the foregoing, the Commission finds that the facts of the case make it evident that there is a need for intervention to meet the ends of justice. While the Commission acknowledges that the collection of EDC is important for the OPs to undertake and carry out the External Development Works in the Sohna area, the fact remains that there is inaction on the part of the OPs to carry out their duties despite collection of Rs. 400 crore (approximately) for the said purpose. Keeping this i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eration of Real Estate Developers Association of India - NCR (CREDAI -NCR) Vs. Department of Town and Country Planning, Govt. of Haryana and another. The case relates to levying off external development charges on the colonizers / developers to whom the licences are granted for developing colonies under the provisions of the Haryana Development and Regulations of Urban Areas Act, 1975 and Rules, 1976. In order to implement above said directions of the Hon'ble CCI in letter and sprit, the following decision is taken in case of licences granted at Sohna development plan area:- (i) For those cases where developers have paid 10% of EDC and submitted Bank Guarantees in respect of 25% of total EDC, all cancellation of licence proceedings on account of default in EDC payments in Sohna Development Plan has been kept in abeyance till the outcome of Case no. 40 of 2017 in CCI and CWP no. 31106 of 2018 in Hon'ble Punjab and Haryana High Court, (ii) For the purpose of any approval in such licenses, including grant of licence on additional land, payment of EDC beyond what has been prescribed in para (i) above shall not be insisted upon. (iii) No interest or penal interest as indicated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, 1976. In order to implement above said directions of the Hon'ble CCI in letter and spirit, the following decision is taken in case of licences granted at Sohna Development plan area:- (i) For those cases where developers 'have 'paid 10% of EDC and submitted Bank Guarantees in respect of 25% of total EDC, all cancellation of license proceedings on account of default of EDC payments in Sohna Development Plan has been kept in abeyance till the outcome of Case No. 40 of 2017 in CCI and CWP No. 31106 of 2018 in Hon'ble Punjab and Haryana High Court, (ii) For the purpose of any approval in such licences, including grant of license on additional land, payment of EDC beyond what has been prescribed in para (i) above shall not be insisted upon. (iii) No interest or penal interest as indicated in the LC-JV agreements executed with the Department, shall be charged on the remaining instalments for such developers. The same may also be implemented in the online EDC statement generated by the Department. 14. At this stage, it is also pertinent to note a submission dated 24.07.2019 filed by the Informant itself before the Commission enclosing therewith Copy of a resolution date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -01-2024 Director, Town & country Planning, Place : Chandigarh Haryana, Chandigarh Endst. No. CC-2052/Asstt. (AK)/2024/1775 Dated: 16-01-2024 A copy is forwarded to the Secretary, Competition Commission of India, 9th Floor, Office Block-1, Kidwai Nagar (East) New Delhi for information please. (R. S. Batth) District Town Planneer (HQ) For: Director, Town & Country Planning, Haryana, Chandigarh. Endst. No. CC-2052/Asstt. (AK)/2024/1776-80 Dated: 16-01-2024" 15. The petitioner, being aggrieved by the aforesaid order, filed a representation dated 05.03.2024 before the respondent no.1. The Respondent no.1 vide communication/letter dated 27.03.2024 communicated that there is no provision to re-open/review of closed cases in which final orders have been passed and suggested that the petitioner shall either file a fresh information or appropriate Interlocutory Application under relevant provision of the Competition Act. 16. Thereafter, the petitioner filed an application under Section 42 of the Competition Act praying for initiation of action and imposition of penalty against respondent no.2 and its director for contravening orders da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion till the final disposal of the proceedings before the Commission or till further orders, whichever occurs earlier." 17. The Commission further observes that vide order dated 13.07.2022 no directions were issued to the OPs under the provisions of the Act. The relevant excerpt from the final decision dated 13.07 .2022 is as follows: "15. Having considered the aforesaid developments, the Commission is satisfied that DTCP has taken earnest steps to address the concerns of the builders as reflected in the aforesaid order passed by DTCP and consequent resolution passed by CREDAI-NCR seeking withdrawal of Case No. 40 of 2017 7 the present case. Having bestowed thoughtful consideration, the Commission is of the opinion that no useful purpose would be served in proceeding with the present matter in light of the aforesaid developments. Accordingly, the Commission decides to close the matter forth-with against OP-1 and OP-2. As a result, nothing would survive against the four officers of DTCP viz. Shri Anurag Rastogi, Shri Arun Gupta, Shri T L. Satyaprakash and Shri K Ai Pandurang - who were the Director(s) General and Director(s) at the relevant time of DTCP and the proceedings again ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing to EDC has attained finality. 22. It is further submitted by the learned counsel on behalf of respondent no.2 that WP(C) 1209/2020 filed by the petitioner association (CREDAI) before the Supreme Court, came to be dismissed as withdrawn vide order dated 28.04.2023. 23. The above submissions of the respondent No. 2 have been strongly refuted on behalf of the petitioner/s. 24. After some hearing, counsel for the petitioners in these matters, confine themselves to seeking that the present petitions be treated as 'information' under Section 19(1)(a) of the Competition Act, and duly considered by Respondent No. 1. It is directed accordingly. The petitioners shall comply with the requisite procedural formalities as prescribed by the respondent no.1, including payment of the prescribed fees. 25. In view of the anomalous conduct of the respondent no. 2, as highlighted by the petitioners, the respondent no.1 is requested to bestow its urgent consideration to the matter. While considering the matter, the respondent no.1 shall also take into account the order/s of the Supreme Court with regard to the levy of EDC, which may have a bearing on the complaint of the petitioners in the prese ..... X X X X Extracts X X X X X X X X Extracts X X X X
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