CCI by its order dated January 7, 2016 dismissed the allegations of violation of abuse of dominant position against “ARE” and Waghere Promoters (collectively ‘Promoters’).

It was alleged by the Informant (Mr. Raghubir Mertia) that despite being promised to hand over the possession of the flat in a timely manner, the promoters took the amount in full before giving the possession of the flat to the Informant. It was also alleged that the Promoters being in the dominant position made Informant to agree to and fulfil the various terms which are allegedly designed in favour of them.

CCI considered that in the relevant market of the provision of services for development and sale of residential apartments/flats in Pune. CCI stated that the competitors of Promoters have projects with varying magnitudes and are additionally having greater size and resources compared to OPs. Presence of such players means that buyers have options to purchase from other developers in the relevant market.

The CCI is of the view that Promoters do not possess market power to act independently or to affect its competitors or consumers in its favour. Since the position of dominance does not exist, the question of abuse does not arise.

(Source: CCI: Order dated January 7, 2016. For full text see CCI website)