CCI issues order against Chandigarh Housing Board for anti-competitive practices

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New Delhi: The Competition Commission of India (CCI) has said the Chandigarh Housing Board (CHB) had abused its dominant position by imposing unfair conditions on the allottees of residential flats under Housing Scheme 2010. "It was alleged that CHB has abused its dominant position under Section 4 of the Act, inter alia, by imposing unfair terms and clauses on the allottees, failure on behalf of CHB to disclose the date of possession of the flats to the allotees in its brochure and/or acceptance- Cum- Demand Letter (ACDL), and levy of penal interest for full month even for delay of one day," the ministry of finance said.

The case was initiated on the basis of an information filed by Ramesh Kumar, an allotee of a flat offered under a Self-Financing Housing Scheme floated by CHB in the year 2010. Having delineated the relevant market as the “market for the provision of services for development and sale of residential flats in the Union Territory of Chandigarh", the Commission found CHB to be in a dominant position so as to operate independently of the competitive forces prevailing in the relevant market.

The commission also found non- disclosure of date of delivery of possession to applicants of the flats and levying penal interest for full month on account of delay of one day in credit of instalment to be an abuse of dominant position under section 4(2)(a)(i) of the Act. Considering the fact that corrective measures have already been taken by CHB, the CCI refrained from imposing any monetary penalty upon CHB.