CCI Frames New Agreement Between Developers & Buyers

CCI will frame a new agreement to smoothen the relationship between the Developers and the buyers. CCI hopes that the new agreement will serve as a benchmark for all commercial dealings.

Competition Commission of India (CCI) will come up with a revised agreement between the property taker and the developer. CCI frames the new agreement on the context of DLF Case in which the builder was alleged to abuse its dominant market position.

Considering the complaint raised by the house owners’ association of two DLF projects in Gurgaon, CCI had inquired the case and penalized the real estate firm for Rs.630 Cr. CCI had found out that the real estate major has abused its dominant market position.

Once the real estate firm was fined, the firm approached the Competition Appellate Tribunal (COMPAT) against the fine. Hearing the appeal by DLF the COMPAT asked CCI to revise the existing buyer- developer agreement and prepare another one which will solve out most of the issues existing between the buyer and the seller.

CCI believes that the revised agreement will sort out majority of the issues related to commercial dealings between the property taker and the developer.

The fair trade regulator CCI’s Chairman Mr. Ashok Chawla said that he expect the revised agreement to meet all the areas and issues related to the builder- buyer commercial dealings. He expressed his hope that the revised agreement would become a benchmark and standard one for all the dealings between the buyer and the seller.

Mr. Chawla seemed confident and he revealed that the new agreement would become a standard for the entire real estate market. He opined that the new agreement will take care of most of the issues related to the commercial aspects of buyer and builder agreement.

Mr. Chawla revealed that CCI is not concerned about how the building is built. On the other hand CCI is concerned how the sale is done. Mr. Chawla revealed that the Commission mainly looks in to the involvement of any anti-competitive practices in the sale of any property.

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