Mar 14, 2018

NCLAT dismisses appeal of real estate buyers alleging abuse of dominance by Earth Infrastructure Private Limited*

On January 23, 2018, the NCLAT dismissed an appeal filed by Ms. Nikunj Sisondia and Ms. Rashmi Raj against an order of CCI dismissing an information alleging abuse of dominant position by Earth Infrastructure Private Limited (‘Earth Infrastructure’). Ms. Sisondia and Ms. Raj had booked retail shops in a commercial project of Earth Infrastructure, wherein Earth Infrastructure had agreed to pay an interest of 12% every month till the possession of the retail shops was given. Ms. Sisondia and Ms. Raj alleged that Earth Infrastructure had defaulted on the aforementioned promise and had not made any interest payment since October, 2015.CCI, while delineating the relevant product market, referred to its previous orders, wherein a distinction had been drawn between residential and commercial real estate as the intention and considerations are different when buying a commercial property when compared with buying a residential property. The relevant geographic market was held to be ‘Noida and Greater Noida’. The relevant market was thus delineated as the market for ‘provisions of services of development and sale of commercial space in Noida and Greater Noida’. CCI had noted that no data has been provided to support the assertion that Earth Infrastructure was in a dominant position and found that no prima facie case was made out in this case.The NCLAT agreed with the opinion of CCI and held that no evidence was brought on record to assert that Earth Infrastructure was indeed in a position of dominance in the relevant market.
*Competition Appeals 02 and 03 of 2018.

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