CCI slaps Rs 13.82 crore fine on Jaiprakash Associates Limited

NEW DELHI: The competition watchdog has slapped real estate conglomerate Jaiprakash Associates Ltd (JAL) with a Rs 13.82 crore fine for abusing its dominant position by imposing unfair conditions on buyers including forcing customers to pay additional charges and reducing common areas available to allottees in its integrated township projects in Noida and Greater Noida.
“Customers have suffered due to lower common areas than what was envisaged; they were made to pay much more than what was originally agreed to; timely completion of the project was not achieved resulting in substantial consumer harm,” said the Competition Commission of India in its order.

The Commission also observers that JAL had imposed “one sided and abusive contract terms” on customers and that if such practices were left unchecked, they could set undesirable standards in the industry.

The commission rejected claims by JAL that they were merely following industry practices stating that as a dominant player in the market, JAL is expected to set an example for other players in the industry to follow.

The commission fined JAL 5% of their average turnover of 276. 3 crore in the relevant market during the period of the violation and directed the company to cease and desist from indulging in such conduct in the future.