CCI dismisses an abuse of dominance case against DLFGD

The Competition Commission of India (CCI) dismissed an Information alleging abuse of dominance, through unfair and discriminatory conditions, by M/s. DLF Gayatri Developers (DLFGD) in relation to the sale of individual plots in its DLF Garden City Project, Mahbubnagar, Telangana. The Informant had alleged that certain clauses of the club agreement – absolute discretion of club management to terminate club membership; exorbitant club membership fees etc. – are unfair and discriminatory and bind the plot owners of the project. However, the CCI noted that in the relevant market of “provision of services for development and sale of residential plots in Mahabubnagar district in the State of Telangana,” there are several other real-estate developers like Girdhari Constructions, Ashoka Ventures etc. that offer comparable and similar amenities, thus no dominance of DLFGD can be established.