CCI Clears Indiabulls Housing Finance of Misleading Advert Charges

The Competition Commission of India (CCI) has dismissed a complaint alleging that Indiabulls Housing Finance and its officials misled consumers through their advertisements for loans against property. The CCI determined there was no violation of Sections 3 and 4 of the Competition Act and closed the case.

The Competition Commission of India (CCI) has dismissed a complaint against Indiabulls Housing Finance and 19 of its officials, including the Managing Director and Chairman, over allegations of misleading advertisements related to loan offers.

In an order issued on Monday, the CCI stated, ''the Commission is of the view that prima facie there is no competition concern arising in the present matter under the provisions of Section 3 and Section 4 of the Act and therefore, the matter is directed to be closed forthwith.''

While Section 4 of the Competition Act deals with the abuse of a dominant position, Section 3 pertains to anti-competitive agreements.

The CCI observed that the market appears competitive, with many banks, non-banking financial companies, and housing finance firms. Therefore, it determined that Indiabulls Housing does not hold a dominant position in the relevant market, which pertains to the 'provision of loans against property in India'.

This ruling came after Anil Bansal, director of Karmyogi Hotels & Buildcon Ltd, filed a complaint alleging that the company abused its dominant position with misleading advertisements and unfair interest rates. He also cited unfair interest hikes and penalties for prepayment of loans as barriers to market entry.

The CCI concluded that the allegations of aftermarket abuse were misplaced, noting that the loan services in question do not involve an aftermarket.

(With inputs from agencies.)