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NEW DELHI: The Competition Commission of India (CCI) has dismissed a complaint against Emaar India Ltd concerning alleged anti-competitive practices related to its “Marbella” villa project in Gurugram.
The CCI stated, “No prima facie case of violation of Sections 3 and 4 of the Act has been established against the opposing parties in this matter.”
Sections 3 and 4 pertain to agreements that restrict competition and abuse of a dominant position, respectively.
The complaint originated from claims made by an informant who alleged that Emaar India Ltd, its subsidiary Emaar India Community Management, and several government entities, including the Haryana Department of Town and Country Planning and the Union of India via DPIIT, violated these sections of the Competition Act.
The informant contended that Emaar misused its dominant market position by allowing the construction of builder floors and non-villa residential units on 97 vacant plots within the project’s designated zones.
Initially, the villas were marketed as part of an exclusive “Signature Villa Community,” and the introduction of builder floors allegedly undermined the project’s uniform luxury branding.
The complaint stated that this development breached promises made in marketing materials, buyer agreements, and conveyance deeds, which emphasized a cohesive luxury villa community.
It was also argued that the addition of builder floors disrupted the project’s intended design and exclusivity, imposing unfair conditions on existing villa owners, thus representing an abuse of dominant position under Section 4.
However, the CCI noted the presence of several major developers, such as DLF, Godrej, Tata Housing, Signature Global, and Vatika Group, who are active in the villa market, providing consumers with alternatives.
The regulator concluded that Emaar India Pvt Ltd does not hold a dominant position in the ‘provision of services for the development and sale of villas in Gurugram.’
Since Emaar India is not dominant in the relevant market, the CCI determined that further investigation into allegations of dominance abuse is unnecessary, indicating no case under Section 4 of the Act.
The competition authority reaffirmed that no actionable case exists against these companies under the applicable regulations.
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