New Delhi: The Competition Commission of India (CCI) has fined real estate developer DLF Ltd 2.41 crore for contravention of an order passed in a case related to one of the company’s projects.

The fine has been imposed under section 42 of the Competition Act. The order was passed on 26 March but made public on Thursday on the commission’s website.

The case relates to the Magnolia project of DLF and came before the commission in 2010.

On 31 January 2012, CCI had passed a cease and desist order under section 27 of the Competition Act asking DLF not to impose any unfair conditions in its agreement with buyers of flats in the project.

This order was later upheld by the Competition Appellate Tribunal (Compat).

The buyers, however, in a representation to CCI said DLF had 28 November 2012 sent demand letters asking for 1.28 crore from each of them “under the garb of super area", a concept “declared illegal and abusive by the commission."

“It is made clear that the order passed by the commission needs to be complied with by the parties and the same cannot be permitted to be opted out by the parties through negotiations," CCI noted in its recent order. “No stay on the cease and desist order passed by the commission was operating when the non-compliance occurred. The said demand letter has not been withdrawn till date."

A DLF spokesperson said: “We would take legal opinion before taking any appropriate steps in this regard."

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