1. This order relates to an information filed under section 19 (1) (a) of the Competition Act, 2002 (The Act) by Magnolia Flat Owners Association and Mr. Rahul Kapoor (collectively referred to as the informants) against DLF Universal Limited (Now DLF Limited), Haryana Urban Development Authority (HUDA) and The Director Town and Country Planning, Haryana (DTCP) (collectively referred to as the Opposite Parties). It has been alleged that DLF Limited (hereinafter referred to as DLF) has abused its dominant position and imposed unfair and discriminatory conditions against the apartment allottees in residential project "Magnolia", being developed by it at DLF City Phase-V, Gurgaon, Haryana. It has also been alleged that Haryana Urban Development Authority and Directorate of Town and Country Planning, Haryana, the other two opposite parties have favoured DLF Limited while sanctioning additional floors over and above the plans sanctioned earlier.

2. The Commission, on earlier occasions, in the case of two other residential projects of DLF Limited, namely, Park Place (in Case No. 18 of 2010) and Belaire (in case No. 19 of 2010), [Belaire Owner's Association v. DLF Ltd. [2011] 109 SCL 655/ (CCI)], had held it to be dominant in the relevant market of provision of services for development of high-end residential units and imposed penalties besides directing the company to 'cease and desist' from imposing unfair and discriminatory conditions on apartment allottees. This order will dispose of the instant information filed against DLF in respect of its project, 'Magnolia' situated in the same geographic area as that of 'Belaire' and 'Park Place'.

3. The facts and allegations as per information, in brief, are as under:

3.1 The information brings out that sometime in August 2005, DLF invited applications for booking of apartments in the Group Housing Complex "Magnolia" consisting of 19 (Nineteen) multi-storied residential buildings of 17 (Seventeen) floors each in Phase-V in DLF City, Gurgaon, Haryana with a representation that the construction of the complex shall be completed and possession would be handed over within a period of 36 (Thirty Six) months from the date of the execution of the apartment buyer's agreement with the allottees subject to timely payment in accordance with the payment schedule as demanded by DLF and further with a provision, that if DLF fails to construct and complete the complex within the said time, it shall pay to the allottees, compensation at the rate of Rs. 5 per sq.ft. of the super area per month for the period of delay. The payment plan was spread over a period of 2.5 years with 90% (Ninety Per cent) of amount of sale consideration payable till December 2007 and the balance 10% (Ten Per cent) on the receipt of occupation certificate by DLF from the authorities. Acting on the representations and promises by DLF, members of the informant association started booking their apartments in the complex from August-September 2005 onwards.

3.2 According to information, much before the sanction and approval of the building plans for the project, DLF amassed huge funds from the allottees as booking amounts. The construction of the project also commenced pending filing of application and approval of the building plans for the project. Apartment buyer's agreement was also executed by DLF within a few months of the allotment of the apartments. Irrespective of the fact that several clauses gave unbridled and arbitrary powers to DLF, a person desirous of booking an apartment had no escape but to accept all clauses and sign on the dotted lines.

3.3 The informants have submitted that in accordance with the application for allotment, in case an allottee does not execute, accept and return the standardized apartment buyer's agreement on the standard format prescribed by DLF, within a period of 30 (Thirty) days from the date of its dispatch, the allotment of the applicant, shall be treated as cancelled at the discretion of DLF a