UNDER SECTION 26(2) OF THE COMPETITION ACT

1. The informant is an association of allottees of bungalows/twin houses/row houses in the integrated township namely Kolkata West International City Pvt. Ltd., proposed to be developed by OP in the District of Howrah, west Bengal.

2. The informant has contended that the integrated city project launched by OP1 was first FDI project in housing sector pegged at Rs. 2,000 crores to Rs. 2,500 crores (in 2005) and was to have everything from housing to hospitals, schools, shopping malls, restaurants i.e. all amenities of modern township. It was to be developed through a tripartite venture invoking (i) Indonesia based Salim Group, (ii) Ciputra Group and (iii) NRI Shri Prasoon Mukherjee of Universal Success Group. The land (approx. 390 acres) for the township was leased out by Kolkata Metropolitan Development Authority (KMDA).

3. The OP1 painted a rosy picture to the public at large through innumerable advertisements and brochures and members of the Informant association and several other persons invested their hard earned money into the project. The project was to be completed by 2008 and the OP1 had received almost 80% to 100% of the total cost of house from allottees by 2008 although the project was at initial stages in 2008. Many representations were made by the allottees to OP1 as well as to the Chief Minister of West Bengal, Urban Development Minister and other authorities but the project was hanging in between and the possession has been handed over to only a few of the allottees, that also without creating infrastructure as promised and without providing connectivity of the township to NH6 as promised.

4. It is submitted by the informant that the OP No. 1 had made the allottees sign a standard terms & conditions cum allotment agreement and the agreement contained several clauses which were unfair and showed abuse of strength by OP1. Reference was made to clause No. 2.2, 3.1, 3.2, 5.1, 5.3, 6, 6.1, 7.2, 7.5, 7.10 and VI Schedule to the agreement read with clause 4.1 and 4.2.

5. The informant made a prayer that the Commission should conduct an appropriate inquiry as to how OP2 had allotted land and gave permissions and clearances to OP1 when OP1 ex-facie violated various statutory provisions and abused its position of strength (Para 1).

6. The informant made following other prayers in the application:-

(a) initiate appropriate inquiry against M/s. Kolkata West international City Pvt. Ltd. including but not limited to the abuse of dominant position by M/s. Kolkata West international City Pvt. Ltd. and such other aspect as this Hon'ble Commission deems appropriate;

(b) direct the respondents to produce the relevant records involving the decision making process culminating into the grant of sanction/approval of the Building Plans/Lay-out Plans;

(c) discontinue forthwith all the unfair and discriminatory clauses imposed upon the buyers by the Respondent No. 1 by abusing its dominant position.

(d) Pass order providing exit option to an Allottee with full refund of money paid by the Allottee, together with interest @ 24% p.a. thereon as well as appropriate compensation towards opportunity cost;

(e) Modify the agreement thereby doing away with the abusive and discriminatory clauses working to the detriment and disadvantage of the Allottees;

(f) Pass order imposing penalty on M/s. Kolkata West International City Pvt. Ltd.;

(g) Pass orders awarding the cost and expenses in favour of the Petitioner Association;

(h) Pass such other or further order(s) as this Hon'ble Commission may deem fit and proper in the facts and circumstances of the present case.

7. After considering the information furnished by the informant, he was asked to appear before the Commission either himself or through his authorized representative. Shri M.L. Lahoty, Sr. Advocate appeared on behalf of the informant and argued the matter before the Commission.

8. The Counsel for the informant submitted that the relevant product mark