Personal Disputes Not Covered Under Abuse Of Dominance, CCI Dismisses Complaint Against New Okhla Industrial Development Authority

Brief Facts:

Vivek Gupta (“Informant”) alleged that the New Okhla Industrial Development Authority (“OP”) holds exclusive authority for the allocation and upkeep of land in Noida, asserting a monopoly over the acquisition, development, auction, allotment, leasing, and sale of land in the area. According to the Informant, in 2019, the OP invited the public to apply for the auction of residential plots in various Noida sectors. The Informant participated by depositing Rs. 2,500/- for registration and subsequently Rs. 12,95,800/- to engage in the auction process.

Following successful participation, the Informant secured the allotment of a plot in Sector-122, Noida, for Rs. 1,29,58,000/-. The allotment letter was issued on 26.08.2019. The Informant claimed to have paid a total of Rs. 1,50,76,056/-, as consideration for the plot. Upon visiting the site after obtaining the lease deed and possession letter, the Informant discovered encroachments by farmers, and threats from unknown individuals. The Informant alleged that he made multiple unsuccessful attempts to address grievances with the OP and sought an alternative plot at a similar location along with damages and charges. The Informant contended that the OP intentionally auctioned off the disputed property without informing him.

The Informant filed a representation/complaint on the Integrated Grievance Redressal System Portal of the Government of Uttar Pradesh. Subsequently, the Informant approached the Allahabad High Court through a Writ Petition. The Informant also filed an information alleging contravention of provisions of Section 4 of the Competition Act, 2002 (“Competition Act”) by OP.

Observations by the Commission:

The Competition Commission of India (“CCI”) noted that the Informant sought recourse by approaching the Allahabad High Court. In this petition, the Informant's grievance pertained to the OP's failure to hand over the plot as per the lease. The High Court referred to OP's submission that the plot was unavailable due to a dispute. Consequently, the OP purposed to return the amount deposited by the Informant, issuing a cheque of Rs. 1,40,98,522.

CCI observed that the nature of the allegations presented in the matter seemed to be more of a dispute between the Informant and the OP, rather than an instance of the abuse of dominant position as outlined in Section 4 of the Competition Act. Therefore, CCI held it unnecessary to conduct further analysis to determine the relevant market, assess the dominant position of the OP, and scrutinise any potential abuse.

Based on the foregoing, CCI held that on prima facie view, no case of contravention under Section 4 of the Competition Act was evident. Consequently, in accordance with Section 26(2) of the Competition Act, the matter was ordered to be closed forthwith.

Case Title: Vivek Gupta vs New Okhla Industrial Development Authority

Case Number: Case No. 22 of 2023

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