Can’t Pay Rs 580 Crore Due To Financial Crunch: DLF To SC – Times of India – 26-Nov-2014
November 27, 2014 - Uncategorized
Leading realtor DLF has moved the Supreme Court, expressing its inability to meet the court-fixed November 26 deadline to deposit Rs 630 crore as a pre-condition to entertain its appeal against the Competition Appellate Tribunal’s (Compat’s) decision of imposing the hefty penalty.
In its May 19 order, Compat had upheld three orders — of August 12, 2011, August 29, 2011, and January 31, 2012 — of Competition Commission of India (CCI), which had imposed the penalty equivalent to 7% of DLF’s turnover, after finding it guilty of abusing its dominant position to discomfit flat owners, both financially and in giving possession, in three Gurgaon apartments — Belaire, Park Palace and Magnolia.
A bench of Justices Ranjana P Desai and N V Ramana had on August 27 directed DLF to deposit the fine amount in the SC registry. DLF had sought six months’ time to comply with the direction. But the bench asked it to deposit Rs 50 crore within three weeks and the rest Rs 580 crore in the next three months, that is before November 27.
In its application, the DLF has sought more time, claiming that it was in serious financial difficulty, which was aggravated by Sebi’s decision to ban the company and six of its senior officials from accessing the capital markets for three years for AN alleged non-disclosure in the 2007 IPO filing.
DLF has offered to pledge land in lieu of the outstanding amount and said its land would remain pledged till it deposited the money in the SC registry.