India - CCI Dismisses Allegations Of Anti-Competitive Agreements And Abuse Of Dominant Position Against M/S Sana Realtors Limited.

Legal News & Analysis - Asia Pacific - India - Competition & Antitrust

6 July, 2019

 

On April 23 2019, CCI dismissed allegations (made by Dejee Singh and 9 other individuals, (the ‘Informants’)) of infringement of Sections 3 and 4 of the Act against M/S Sana Realtors Limited (‘Sana Realtors’). [1]

 

The allegations pertained to delay in handing over possession of small office / home office (‘SOHO’) units in a project launched by Sana Realtors in Gurugram, Haryana in the year 2009. The Informants further alleged that Sana Realtors, inter alia, imposed one-sided, arbitrary and unfair clauses in its sale agreements amounting to an abuse of dominance. The Informants’ claim was supported by distinguishing the market for SOHO units from purely residential apartments and commercial/office units.

 

CCI disagreed with the Informants’ proposed market definition and disregarded their attempt to showcase SOHO units as a separate relevant market. CCI defined the relevant market as “market for commercial units for office space in Gurugram” and did not find Sana Realtors to be dominant in this market (taking into account competition from large players like DLF, Omaxe, and others.) 

 

Accordingly, CCI summarily dismissed the allegations of abuse of dominance .

 

For further information, please contact:

 

Zia Mody, Partner, AZB & Partners

zia.mody@azbpartners.com

 

[1] Case No. 6 of 2019