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Complaint Against DLF Rejected by Fair Trade Regulator

New Delhi: The Competition Commission of India (CCI) on Wednesday rejected allegations of anti-competitive practices made against realty major DLF related to a project in the national capital.

DLF is already under the scanner of the competition watchdog, which earlier this year ordered two separate probes against the realty company.

DLF was also fined Rs. 630 crore by CCI in another case in August 2011, which was later set aside by the Competition Appellate Tribunal after which the regulator approached the Supreme Court.

The latest complaint pertained to apartments booked in the residential project DLF Capital Greens, Phase III, in the national capital.

The fair trade regulator has dismissed the allegations after finding that prima-facie there was no violation of competition norms especially since DLF is not in a dominant position in the relevant market.

For this case, 'provision of services relating to development and sale of residential apartment in Delhi' was considered as the relevant market.

"Since DLF is not found to be in a dominant position, the question of its conduct being abusive does not arise," CCI said in its order.

According to CCI, the complainants were primarily aggrieved with the alleged abusive conduct of DLF in regards to making false representations regarding delivery schedule, concealing information relating to requisite approvals/sanctions and selling of parking spaces, among others.

The regulator noted that in the geographical region of Delhi, DLF is just one of the real estate developers engaged in the provision of services relating to development and sale of residential apartment.

"There are many other real estate developers operating in Delhi who are engaged in the provision of services relating to the development and sale of similar residential dwelling units. Some of such developers include Delhi Development Authority, Ansal API, Umang Realtech, Emaar Group, CGHS Group, Parsvnath, etc."

"These developers appear to pose competitive constraints to DLF in the relevant market," the order said.

Presence of other real estate developers in the relevant market indicates that the informants (complainants) were not dependent upon DLF for purchasing residential apartments, it added.

The complaint was filed by Ess Cee Securities and Signature Securities.

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Realty Trends

Home prices near most-affordable levels in over 30 years: HDFC


Home prices may have been on an upward spiral for many years, but the cost of owning a house in India remains near the most affordable level in over three decades, shows data compiled by mortgage giant HDFC Ltd.

The average price of a home, purchased with a housing loan, rose to over Rs. 45 lakh in the 2012-13 fiscal year -- marking the fourth consecutive year of uptrend from about Rs. 25 lakh in the year 2008-09, HDFC has said in a presentation.

However, factors like an even greater surge in the personal income levels, tax incentives and lower interest rates, have resulted into houses becoming more affordable to purchase, it said.

 

 

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India Property Investment Gyan

Major schemes for affordable housing to be modified: Girija Vyas


NEW DELHI: Major schemes meant for providing affordable housing to urban poor will soon be modified to make them more people-friendly, the government said today and invited the private sector to contribute more actively in this area. 

Speaking to reporters here, Housing and Urban Poverty Alleviation (HUPA) ministerGirija Vyas today said her ministry is modifying all the major schemes including the Rajiv Awas Yojana (RAY), Rajiv Rinn Yojana and the, Affordable Housing in Partnership scheme and added enormous budgetary support has been earmarked during the current plan period. 

Secretary HUPA Arun Kumar Misra told reporters that a fund of Rs 35,000 crore had been allocated to the ministry for the implementation of three major schemes, including RAY, which was being run in as a pilot project earlier under 12th five- year plan. 

He said the ministry would require approval from the cabinet for the implementation of these schemes and efforts would be made that through these funds 2 million affordable houses are encouraged. 

He said that in addition to the central government funds, banks and credit institutions would be providing funds for construction of affordable houses. 

Vyas said that with urbanisation, the number of urban homeless and area under slums had grown. 

Vyas said there was a need for private developers to develop economic models to foster affordable housing for economically weaker sections and lower income group households in urban areas as government efforts in this direction needed to be supplemented. 

Vyas also said a technical group, set up by her ministry, had shown that out of 18.78 million housing shortage in the country, 96 percent shortage is in EWS and LIG category and for this huge investments and private sector participation were required. 

Misra said the group set up by the ministry has suggested incentives for the affordable housing sector included concessions to development-related charges and service taxexemptions. 

It also sought direct tax rebates for affordable housing projects and inclusion of the sector in the 'infrastructure facility' he said and added the task force had felt that governments need to still provide direct capital grant support to affordable housing projects. 

Misra said that in the symposium held today where states, experts and private sector representatives were present, there was unanimity on many of the suggestions.

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Green Property- Eco Homes

Reclaim your city space: Projects in Delhi, Mumbai and Kolkata aim to transform lives

 
Three projects in three cities aim to transform the lives of people who live close by. The one in Mumbai hopes to transform a congested area into a green precinct; the one in Delhi converted an open drain into a walkway, while Kolkata hopes to bring the crowds back...