The Supreme Court on Wednesday upheld the Competition Appellate Tribunal's order and instructed DLF to pay a penalty of Rs 630 crore in three months for unfair trade practices.
The company will have to pay Rs 50 crore within three weeks, while the remaining will have to be paid within thee months, according to news reports. It will also have to submit an undertaking of interest of 9 per cent on the penalty amount.
DLF had earlier moved the Supreme Court against the Competition Appellate Tribunal's (Compat) May order which had upheld the Competition Commission of India ruling imposing the penalty on the firm for unfair business practices.
In 2011, the CCI had found DLF violating fair trade norms and imposed the said penalty on a complaint filed by the owners’ association of a DLF project, the Belaire Owners’ Association, in Gurgaon.
The association had alleged that DLF imposed highly arbitrary, unfair and unreasonable conditions on allottees of apartments, which had serious adverse effects and ramifications on the rights of the buyers.
Dismissing DLF's plea against the fine imposed by the Competition Commission of India, the tribunal had given the company 60 days to pay the penalty or approach the Supreme Court. DLF had then said that it would move the Supreme Court on the matter.
A DLF spokesperson told Business Line , "We are studying the order and will issue a statement soon."