New Delhi: The Competition Commission of India (CCI) has found Jaiprakash Associates Limited (JAL) to be in violation of Section 4(2)(a)(i) of the Competition Act, 2002 (Act) and imposed a penalty of Rs 13.82 crore for the abuse of dominant position in the market of independent residential units in their integrated township, by imposing unfair and discriminatory conditions on the allottees in Wish Town, Jaypee Greens project, in Noida and Greater Noida.
The penalty was calculated at 5% of the average revenue of JAL from sale of independent residential units in the relevant market.
A cease and desist order has also been issued to JAL.
The final order was passed on the information filed by a buyer who alleged that conditions imposed by JAL were arbitrary and heavily tilted in favour of it.
The Commission found that the standard terms and conditions imposed by JAL were one-sided and couched in a manner so as to unilaterally favour itself and be unfavourable to the consumers.
Moreover, terms were vague and did not confer any substantive rights on the buyers. The conduct of JAL, such as collecting charges from the buyers without delivering the residential unit on time, adding additional construction and amending the layout plans, imposition of various charges, right to raise finance from any bank or financial institution without consulting buyers was held to be abusive.