Jaya Pandey and Prakash C Pandey Vs Advance India Projects Limited (Competition Commission of India)
The Competition Commission of India (CCI) considered an information filed by the Informants against the Opposite Party (OP), a real estate developer, alleging contravention of Sections 3 and 4 of the Competition Act, 2002. The Informants were purchasers/allottees of commercial units in three projects developed by the OP in Gurugram.
The Informants stated that they had invested substantial amounts in the OP’s projects based on representations regarding commercial viability, premium positioning, expected footfall, tenant mix, and projected rental returns. They alleged that the OP occupied a position of economic strength in the market for organised commercial retail real estate in Gurugram and that individual investors lacked bargaining power once investments had been made.
The Informants contended that the Buyer Builder Agreements (BBAs) executed by the OP were unilateral and non-negotiable. According to them, these agreements conferred excessive discretionary powers on the developer, imposed disproportionate penalties and financial liabilities on buyers, restricted the commercial autonomy of allottees, and provided inadequate remedies against the developer. They alleged that these features reflected an economic imbalance and exploitative conduct.
The Informants further alleged that, after collecting consideration amounts, the OP retained unilateral control over important commercial aspects affecting earning potential, including leasing and tenant selection, rental structuring, security deposit management, tenant mix, zoning, and operational decisions. They also alleged that the OP artificially suppressed rentals by controlling leasing strategies and rental benchmarks, thereby distorting competitive pricing mechanisms. Additionally, they claimed that rental income and security deposits were not disbursed in a timely and transparent manner, causing financial hardship and increasing investor dependency on the developer.
