Real estate giant DLF may have to cough up a huge sum of money for alleged misuse of its position. The Competition Commission of India has imposed a penalty on the company for charging some customers on any resale they made. It has demanded a penalty that’s the equal of 7% of average turnover from the last three years. That amounts to a total of about Rs630 crore. CCI started investigating the case back in 2008 after an owners’ association at DLF Belaire filed a complaint. DLF says it’s consulting experts and that it has a strong case. The firm has about two months to appeal against the penalty with the Competition Appellate Tribunal.
On the economy, inflation in India remains stubbornly high despite a slight easing last month. And high costs of manufacturing goods are the main culprit. New figures show the food price index reached 9.22% in July. Back in June it was at 9.44%.
Tuesday’s numbers are subject to revisions. The government has already revised inflation for May upwards by half a percentage point. High figures make it more likely the Reserve Bank will continue its policy of monetary tightening.
Indian stocks lost ground for a third day in a row over renewed concerns about the global economy. Poor GDP numbers from Germany pulled European markets down on Tuesday, sending markets in other regions into the red. The Sensex dropped 75 points to 16,765. And the Nifty tumbled 37 to 5,036.