CCI fines Rs 1 Cr on Ghaziabad Devt Authority for raising EWS flat price

FineBy Accommodation Times Bureau


The Competition Commission of India (CCI) on Wednesday fined over Rs 1 crore to Ghaziabad Development Authority (GDA) for abuse of its dominant position by imposing the unfair condition on the allottees from economically weaker sections (EWS) in its Pratap Vihar Residential Housing Scheme.

The CCI found that GDA has violated the provision of Section 4 (1) read with Section 4 (2) (a) (i) of the Competition Act, 2002.

In 2008, the GDA had floated the scheme for EWS flats at an initial price of Rs 2 lakh and whereas in 2015, CCI found that GDA had raised the price of EWS flats to 7 lakh without any enabling provision either in the Brochure of the Scheme or allotment letter is arbitrary and unilateral.

CCI in its order said that “Violating  Section 4(2)(a)(i) of the Act, it has imposed the penalty on GDA of Rs 1,00,60,794 and also issued an order of Cease and Desist against GDA.”

It further said, the condition for levying penal interest at 10.5% per annum in case of delay in the payment of the quarterly instalments by the allottees without a corresponding provision for GDA in case delay of in giving possession of the flats is abusive, being one-sided and unfair. Therefore, a penalty has imposed on it.

Ghaziabad Development Authority is created under Section-4 of Urban Planning and Development Act,



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