In 2011, CCI had found DLF violating fair trade norms and abusing its dominant position and imposed a penalty of Rs 630 crore.
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In a huge win for customers, the Supreme Court (SC) on Wednesday directed realty major DLF to submit Rs 630 crore within three months. The company will be submitting undertaking of interest of 9 percent on Rs 630 crore fine.
Most realty analyst were expecting this decision by the apex court. Quantum wise, the amount of Rs 630 crore is nearly 7.5 percent of DLF’s FY14 revenue of Rs 8,298 crore.
On July 11, DLF moved the apex court against the COMPAT order announced in May that upheld competition regulator Competition Commission of India’s (CCI) ruling, which imposed Rs 630 crore penalty with 9 percent interest alleging abuse of dominant position in Gurgaon.
In 2011, CCI had found DLF violating fair trade norms and abusing its dominant position and imposed a penalty of Rs 630 crore. This as a complaint was filed by Belaire Owners Association, Gurgaon – the owners’ association of a DLF project. The association alleged that DLF imposed highly arbitrary, unfair and unreasonable conditions on allottees of apartments and these conditions had serious adverse effects and ramifications on the rights of the buyers.
This tribunal then dismissed DLF’s plea against the fine imposed by the CCI. The tribunal had given the company 60 days to pay the penalty or approach the Supreme Court.
DLF had then said that it would move the Supreme Court on the matter.
DLF stock price
On August 27, 2014, at 15:20 hrs DLF was quoting at Rs 183.60, down Rs 7.95, or 4.15 percent. The 52-week high of the share was Rs 242.80 and the 52-week low was Rs 121.00.
The company’s trailing 12-month (TTM) EPS was at Rs 2.52 per share as per the quarter ended June 2014. The stock’s price-to-earnings (P/E) ratio was 72.86. The latest book value of the company is Rs 93.41 per share. At current value, the price-to-book value of the company is 1.97.