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Supreme Court directs DLF to pay Rs 630 cr penalty; shares tank

IANS 27 Aug 2014, 16:05:18 PM IST
New Delhi: The Supreme Court on Wednesday asked real-estate major DLF to deposit Rs 630 crore in the court within three months. The apex court asked DLF to deposit Rs 50 crore in three weeks.

Admitting the DLF plea versus the Competition Commission of India (CCI), SC said that DLF will have to pay 9% interest if it loses Competition Panel case.

DLF had challenged an order by Competition Commission of India (CCI) that had imposed a fine of Rs 630 crore on the real estate major for allegedly resorting to unfair business practices.

In May, the Competition Appellate Tribunal had upheld the penalty of Rs 630 crore on DLF. In 2011, the CCI had slapped the penalty after complaints by flat buyer associations of two DLF projects in Gurgaon, DLF Park Palace and The Belaire.

The buyers had alleged that the builder had delayed possession of apartments as they had changed their original plan to accommodate more floors.

DLF, India's biggest developer, had a total debt of over Rs. 18,000 crore at the end of the June quarter.

Shares in the company closed 4.6 per cent lower at Rs. 182.90. DLF was the top loser in the 50-share Nifty index and underperformed the broader markets.