(a) whether the Government is aware of various kinds of fraud and malpractices are being adopted in the realty sector;
(b) if so, the details thereof and the names of developers/companies against which such
cases have been detected;
(c) whether the Competition Commission of India has any proposal to appoint a regulator
for the realty sector to address these complaints; and
(d) if so, the details thereof?
THE MINISTER OF CORPORATE AFFAIRS (SHRI SALMAN KHURSHID)
(a) Ministry of Corporate Affairs is concerned with taking action against the developers
in the realty sector which are registered as companies under Companies Act, 1956 for
offences/violations of the provisions of the Companies Act, 1956 as and when noticed. In
case, the practices followed by the real estate developers are anti-competitive or in the
nature of abuse of dominance, Competition Commission of India initiates action under the
provisions of the Competition Act, 2002. However, malpractices and fraud which attract other
Acts like Prevention of Money Laundering Act, 2002; Foreign Exchange Management Act, 1999;
Securities Contracts (Regulation) Act, 1956; Securities and Exchange Board of India Act, 1992;
Banking Regulation Act, 1949; Income Tax Act, 1961, and/or Indian Penal Code or other laws are
handled by concerned agencies/Departments in respective Ministries.
(b) Based on the investigations carried out by the Serious Fraud Investigation Office
(an organization with this Ministry) in respect of M/s Manmandir Estate Development Pvt.
Ltd, prosecutions have been filed for violations of Sections 299, 13/291, 295, 406, 542 and
543 of the Companies Act, 1956 and Sections 418 and 420 of Indian Penal Code 1860. In
addition, Competition Commission of India has received information alleging abuse of dominance
by following four developers:-
(i) DLF New Gurgaon Homes Developers
(ii) DLF Home Developers Ltd & Others
(iii) DLF Limited and others
(iv) DLF New Gurgaon
(c) No Sir, Competition Commission of India is not empowered to appoint regulator.
(d) Does not arise.