Foul play cry against 11 real estate companies; CCI verifying complaints
NEW DELHI: Competition watchdog Competition Commission of India (CCI) on Monday said it is examining 11 complaints against a few real estate companies pertaining to anti-competitive practices, close on the heels of investigation agency CBI unraveling a major housing finance racket involving bank officials and realty firms. CCI chairman Dhanendra Kumar said that of the 137 cases that the CCI is investigating, 11 are from the real estate sector.
Mr. Kumar, however, did not reveal the name of these companies or specified if these companies have any connection with the housing finance bribery scam. The CCI chairman confirmed that complaints have been received under sections 3 and 4 of the Competition Act 2002, which deal with anti-competitive agreements and abuse of dominant position, respectively.
A number of real estate companies such as Lavasa, DB Realty and Adani are under CBI’s scanner in the housing loan bribery scam. Mr. Kumar also said that CCI will try to approve 95-96 % of the merger and acquisition proposals within a month of the filing and the intention of the commission is not to slow down the process and retard growth.
The amendment to the CCI Act, which would pave way for the notification of the provisions, is expected to be presented before the Parliament in the current session. Sections 5 and 6 of the Competition Act 2002 would empower CCI to approve high voltage takeovers and mergers.
Though CCI, which has powers to check anti-competitive agreement and abuse of dominant positions by companies, began functioning in May last year, it is yet to get the power to approve high-profile mergers. The CCI draws its powers from the Competition Act, passed by Parliament in 2002. The commission became fully functional last July.