Case Law Details
Buchi Ramarao Valury Vs Covai Property Centre (India) Private Limited (Covai) (Competition Commission of India)
In a recent case brought before the Competition Commission of India, Mr. Buchi Ramarao Valury filed an information alleging contravention of competition laws against Covai Property Centre (India) Private Limited (Covai) and other entities. This article delves into the details of the dispute, analyzing the allegations and the Commission’s decision.
The dispute centers around Mr. Buchi Ramarao Valury’s purchase of a two-bedroom apartment in the “Urbana Irene” complex developed by Ozone Urbana Infra Developers Private Limited. Covai Property Centre, along with its subsidiary Covai Senior Citizen Services Pvt. Ltd., is alleged to have tied-in arrangements with Ozone Urbana Infra Developers, compelling apartment owners to accept specific catering and housekeeping services.
Mr. Buchi Ramarao Valury contends that these arrangements restrict his freedom to choose service providers and result in unilateral increases in monthly maintenance charges (MMC) without proper justification. He argues that such practices constitute abuse of dominant position and anti-competitive conduct under the Competition Act, 2002.
The Informant also highlights discrepancies in the service agreements, lack of transparency in cost allocation, and absence of residents’ participation in decision-making processes regarding service provisions and charges. He asserts that residents should have more control over service agreements and pricing structures.
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