Sep 06, 2018

CCI Dismisses Residents’ Association’s Complaint Against Merlin Developers

On July 9, 2018, CCI disposed off the information filed by Cambridge Residents Welfare Association (‘Residents’ Association’) alleging violation of Section 4 of the Competition Act against Merlin Developers Private Limited (‘MDPL’), its office bearers, and Merlin Projects Limited (‘MPL’)[1]. The allegation concerned ‘Cambridge Residency’ which is a group of apartments built in Kolkata by MPL, and marketed by MDPL. It was alleged that the MDPL, its office bearers and MPL had deviated from the terms agreed upon in the sale agreement for apartments in Cambridge Residency, and had made false promises, including the delivery of a smaller super built up area, dishonor of maintenance clause in the sale agreement, and non-transfer of corpus fund to the Residents’ Association’s account. CCI defined the relevant market as the ‘market for provision of services for development and sale of residential flats in Kolkata’.CCI ascertained the dominance of MPL by comparing it with competing entities on various parameters, including land bank, number of projects, rate per square feet, number of units, and area of the units. CCI found MPL to be a smaller player compared to other real estate players in Kolkata, along with the availability of other similar projects in the vicinity of Cambridge Residency. CCI held that MPL is not dominant in the relevant market and hence, no prima facie case was made out by the informant. Accordingly, CCI disposed off the information under Section 26(2) of the Competition Act.[1] Case 50 of 2017.

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