Fair trade regulator rules out abuse of dominant position by two realty firms
The Competition Commission of India (CCI) has dismissed allegations of abuse of dominant position against two realty companies - SG Estates Ltd and SKI View Hotel - with respect to development of a commercial real estate project in Vasundhara, Ghaziabad.
As per the complaint by two residents of Vasundhara, both the firms imposed one-sided unfair terms in the purchase agreement and sale deed for an office space at a commercial complex developed by them, charged higher price for maintenance and abused their dominant market position, among others.
In an order dated January 2 and made public on Friday, January 3, the fair trade regulator said that SG Estates and SKI View Hotel "do not appear to be in a dominant position in the relevant market and there was no question of abuse of dominance".
"As such, the Commission finds that no prima facie case was made out for directing Director General to carry out investigation into the matter under ... (Competition) Act," it added.
According to CCI, the companies were not in a dominant position as other well-known builders "have a substantial presence in the commercial property segment in Ghaziabad".
CCI also observed that certain builders appeared to be competitors and bigger than the two companies in terms of size and resources.
In a separate order, it has rejected the allegation against Cravatex that it abused dominant position in the market of 'sale of Treadmills'.
CCI is of the view that "prima facie Opposition Party (Cravatex) is not a dominant player in the relevant market and the question of abuse (under relevant section of the Act) would, therefore, not arise".
Consequently, the fair trade watchdog closed the case against Cravatex.
According to the CCI order, one Shyam Lal Gupta, in his complaint, did not provide data to suggest that Cravatex held a dominant position in the relevant market of motorised tread mill machine in India.
