New Delhi: Supreme Court on Wednesday said it will hold a hearing on February 18 to decide the issue of jurisdiction of Competition Commission of India (CCI) in a case relating to alleged adoption of "unfair business practices" by real estate major DLF.
A bench headed by Justices S J Mukhopadhaya and N V Ramana did not pass any order to restrain CCI from passing orders against DLF's housing projects in Gurgaon.
"We will first hear the question of jurisdiction. Whether Competition Commission had the jurisdiction," the bench said while posting the matter for hearing on February 18.
The apex court said at this stage, the primary question to be determined was whether the CCI can look into the quality of service rendered in an agreement and whether it breached anti-trust laws.
During hearing, senior advocate C A Sundaram, appearing for DLF, said CCI has ordered a fresh probe against the real estate major for abusing dominant position and was also imposing fines.
Senior advocate Amit Sibal, appearing for CCI, however contended that the appeals have to be heard in full and they cannot be heard on the issue of jurisdiction alone.
Earlier, DLF had filed a fresh undertaking in the apex court saying it be allowed to deposit balance Rs 480 crore out of total Rs 630 crore fine imposed on it by CCI in six monthly installments starting January 15.
CCI had slapped a fine of Rs 630 crore on the real estate firm for allegedly resorting to unfair business practices.
DLF had deposited Rs 150 crore of the Rs 630 crore fine with the apex court registry. The court had in its August 27 last year order said the Registry will be at liberty to invest it in any of the nationalised banks.
DLF had moved the apex court expressing difficulty in meeting the November 26 last year deadline to deposit entire Rs 630 crore as a pre-condition to entertain its appeal.
It had sought six months' time to comply with the direction but the bench had asked it to deposit Rs 50 crore within three weeks and the rest Rs 580 crore in the next three months, that was before November 27.
The real estate firm has sought more time to deposit the remaining amount claiming it was in serious financial difficulty, which was aggravated by SEBI's decision to ban the company and six of its senior officials from accessing the capital markets for three years for an alleged non-disclosure in the 2007 IPO filing.
The apex court had admitted DLF's appeal in which Haryana government, Haryana Urban Development Authority (HUDA) are parties along with the residents' association, on whose plea CCI had imposed the penalty on the company.
CCI had in 2011 found DLF violating fair trade norms and imposed a fine of Rs 630 crore on it following a complaint by Belaire Owners' Association in Gurgaon. It was in May 2010 that the buyer's association had complained against DLF.
