Ghaziabad Development Authority Vs Competition Commission of India (NCLAT Delhi)
NCLAT Delhi held that imposition of 5% penalty on average turnover/ receipt related to EWS by Competition Commission of India [CCI] under section 27 of the Competition Act, 2002 cannot be termed as unreasonable or excessive.
Facts- The present appeal has been filed under Section 53 (b) of the Competition Act, 2002 by Ghaziabad Development Authority (“GDA”) who is the Appellant herein, for challenging the Impugned Order dated 28.02.2018 in Case No. 86/2016 passed by the Competition Commission of India u/s. 27 of the Competition Act. Competition Commission of India is the Sole Respondent in the present appeal.
Conclusion-
Held that CCI has imposed penalty @5% of average turnover/ receipt from the proceeds of only services for development and sale of low cost residential flats in affordable housing scheme for EWS for the last three relevant years based on financial statement filed by the Appellant. We note that in terms of Section 27(b) of the Competition Act, CCI may impose such penalty as it may deem fit which shall not be more than 10% of the average of turn over for last three preceding financial years. Thus, theoretically CCI could have impose penalty up to 10% of total turnover of the Appellant but looking to various factors and role of Appellant for providing flat of EWS, CCI has decided to impose only 5% penalty (instead of 10% penalty) and that too, only on average turnover/ receipt related to EWS, instead of full turnover of the Appellant which cannot be termed as unreasonable or excessive. In view of this we do not find any illegality in the Impugned Order as far as the imposition as well as the quantum of penalty is concerned and therefore, we are not convinced with the arguments of the Appellant on this account.
