By Accommodation Times News Service
Competition Commission of India (CCI) is working on a model framework for the commercial agreements between real estate developer and the property buyer, which will eventually be the serve the industry as a benchmark. The framework is being prepared by the CCI in the connection with a high profile market dominance case against the realty giant DLF Group which has challenged a Rs. 630 crore penalty imposed on its by the commission.
Hearing DLF’s appeal against the CCI order the Competition Appellate Tribunal (COMPAT) asked fair trade regulator to present a modified buyer-seller agreement between DLF and the flat buyers of its projects. Ashok Chawla, CCI Chairman said, whether a real estate company is dominant the DLF company was found big, most of them follow the same format pattern that big players follow. The framework will serve as a general model for everyone. Adding further he said once that happens the modified plan meets judicial test should take care of most of the commercial aspect between the buyer and seller.
COMPAT has asked the fair trade regulator to decide on what constitutes a fair balanced trade agreement.CCI will shortly finalize key parameters. Chawla adding said that there won’t be a surprised if the modified pact will come under the judicial scrutiny, there will be always be issues related to local laws and regulations in the real estate sector, but the CCI judgments will only be restricted to the buyer and seller agreements.