CCI probe: DLF says will reply after receipt of notices

Facing two fresh CCI probes for alleged unfair trade practices, realty major DLF today said it will make its submissions once its receives notice from the fair trade watchdog and details are sought from the company.

The Competition Commission of India (CCI) has ordered two fresh probes this month against DLF, finding the company to have prima-facie abused its dominant position relating to the two different residential projects in Gurgaon. "The orders under Section 26(1) of the Competition Act, 2002 have been passed by CCI on the 'Regal Gardens at DLF Garden City' and 'Sky Court Project' at Gurgaon," DLF said while replying to clarifications sough by the stock exchanges in this regard.

The Commission, on a prima facie opinion, held that the conduct of DLF appears to be in contravention of the provisions of Section 4 of the Act and has directed the Director General (DG) to cause an investigation, it added. DG is the investigation arm of the CCI. "The company will file its reply before DG as and when notices are received or information is sought for," said DLF, the country's largest real estate firm.

In its latest order, CCI asked its investigative arm to conduct a detailed probe, relates to alleged "abuse of dominant position in development and sale of residential units in Gurgaon" for the Skycourt housing project of DLF Universal. This followed another probe ordered by the CCI for probe into similar complaints related to the 'Regal Gardens at DLF Garden City' project in Gurgaon. In an analyst call earlier this week, DLF CFO Ashok Tyagi had said: "CCI has not passed a judgement but only ordered an enquiry in the 'Regal Gardens' matter because they felt that the causes of dominance and the agreement which they have opined upon earlier were prima facie valid." "Let's see.

We believe that obviously the facts are very different. They have ordered an enquiry so the legal process will follow its course," Tyagi had said. In a separate matter, the CCI had imposed a penalty of Rs 630 crore on DLF in August 2011.

The company challenged that order before the Competition Appellate Tribunal, which upheld the penalty, pursuant to which DLF has gone to the Supreme Court. In another case, CCI last month rejected allegations that realty major DLF indulged in unfair business practices with regard to a commercial project at Okhla in the national capital.

DLF stock price

On February 12, 2015, DLF closed at Rs 158.90, up Rs 0.20, or 0.13 percent. The 52-week high of the share was Rs 242.80 and the 52-week low was Rs 100.00.

The company's trailing 12-month (TTM) EPS was at Rs 4.83 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 32.9. The latest book value of the company is Rs 93.40 per share. At current value, the price-to-book value of the company is 1.70.

Anda sedang membaca artikel tentang

CCI probe: DLF says will reply after receipt of notices

Dengan url

http://gayafashionshow.blogspot.com/2015/02/cci-probe-dlf-says-will-reply-after.html

Gaya Fashion