New Delhi: Fair trade regulator CCI has rejected allegations of unfair business practices against Bombay Dyeing & Manufacturing Company and two real estate developer groupings.
The complaints were filed against Bombay Dyeing & Manufacturing Company, Confederation of Real Estate Developers Association of India (CREDAI) and Maharashtra Chamber of Housing Industries-CREDAI.
After looking into the matter, the Competition Commission of India (CCI) has ruled that these entities did not violate competition norms.
"...the Commission is of the view that no case is made out against the Opposite Parties for contravention of the provisions of section 3 of the Act and the informations are ordered to be closed...," CCI said in its order.
Sections 3 of the Act pertain to anti-competition agreement.
A complaint filed by Nitin Radheyshyam Agarwal and his wife Nikita Nitin Agarwal alleged that Bombay Dyeing, CREDAI and Maharashtra Chamber of Housing Industries-CREDAI have indulged in the practice of standard clauses in their respective apartment buyers agreement.
Bombay Dyeing, which launched a residential scheme in 2006, sent an invitation through e-mail to Agarwals drawing attention to its upcoming project. The invitation contained features of the project and the terms of offer.
Subsequently, Agarwals booked flats and got the possession after some initial payments.
The apartment buyers agreement carried the terms of sale, some of which were different from those stated in the invitation, Agarwals alleged.
The standard clauses included mandatory club house membership, mandatory purchase of parking spaces and negligible compensation by developers for delay in delivery of possession of apartments as opposed to onerous penalties for delay in payment of installments by purchasers.
"A clause may have been started by a developer, but it has become standardised as an industry norm over time...while the existing players are already practising it, every new developer consciously incorporates such standard clauses in their respective agreements," the complainant said.
They alleged that CREDAI provides a platform for such trade practices to flourish. Bombay Dyeing, a member of CREADAI, needs to adhere to the 'code of conduct' stipulated by the apex body.
Bombay Dyeing is a member of Maharashtra Chamber of Housing Industries CREDAI, which, in turn, is a member of CREDAI.
Source : Profit.NDTV
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