CCI Dismisses Developers' Complaints Against Haryana Town-Planning Authorities
The Competition Commission of India (CCI) has dismissed abuse of dominance complaints filed by ILD Housing Projects Private Limited and CREDAI-NCR against Haryana's town planning authorities, ruling that competition law does not apply to statutory town-planning and licensing functions.
Competition LawReal EstateTown PlanningHaryanaCciReal EstateDec 22, 2025
In an order dated December 16, 2025, a bench led by Chairperson Ravneet Kaur, along with members Anil Agarwal, Sweta Kakkad, and Deepak Anurag, stated that the Department of Town and Country Planning, Haryana, and the Haryana Shehri Vikas Pradhikaran were carrying out duties assigned to them under state law. These functions are regulatory in nature and not commercial activities.
On the perusal of the preamble of the HDRUA Act and provisions contained therein, it is amply clear that the OP-1 has been tasked with regulatory and statutory functions of issuance of Licence to Developers and undertake activities, which though economic, are essentially regulatory and statutory in nature, the Commission said. This, according to the commission, is outside the purview of Competition Law.
The complaints challenged the levy of External Development Charges and Infrastructure Development Charges, along with interest and revision clauses by Haryana’s urban town development authorities. Developers alleged that the charges were imposed in a one-sided manner. They argued there was no corresponding obligation on the authorities to complete external infrastructure works within a fixed timeframe. They also contended that licence terms were standardized and non-negotiable, which they claimed was an abuse of dominance under Section 4(2)(a)(i) of the Act.
The CCI rejected these arguments. It held that town planning, regulation of land use, and issuance of development licenses are statutory functions of the state. These activities do not operate in a competitive market. As a result, they cannot be examined under competition law. The Commission is of the opinion that the activities carried on by OP-1 in the present matter are statutory functions, which cannot be a subject matter of examination under the Act, the order said.
It also relied on earlier High Court and Supreme Court rulings that have upheld the legality of levying such charges. The Commission noted that courts have already held that a developer's liability to pay these charges is independent of the pace of infrastructure development. Re-examining the same issue, it said, would go against settled judicial findings.
On allegations of unfair license conditions, the CCI said the terms flow directly from legislation. Since these conditions are prescribed by law, they cannot be treated as abusive under competition law.
Finding no prima facie case of abuse of dominant position, the Commission closed both cases and dismissed all applications seeking interim relief.
Frequently Asked Questions
What is the Competition Commission of India (CCI)?
The Competition Commission of India (CCI) is a statutory body established under the Competition Act, 2002, to enforce and administer the provisions of the Act. It aims to prevent anti-competitive practices and promote fair competition in the market.
What were the main complaints filed by the developers against Haryana's town planning authorities?
The developers, ILD Housing Projects Private Limited and CREDAI-NCR, filed complaints against the levy of External Development Charges and Infrastructure Development Charges, along with interest and revision clauses. They alleged that these charges were imposed in a one-sided manner and that the authorities were not obligated to complete external infrastructure works within a fixed timeframe.
Why did the CCI dismiss the developers' complaints?
The CCI dismissed the complaints because it ruled that the activities of the Department of Town and Country Planning, Haryana, and the Haryana Shehri Vikas Pradhikaran are statutory functions and not commercial activities. These functions are outside the purview of competition law.
What are the statutory functions of the town planning authorities in Haryana?
The statutory functions of the town planning authorities in Haryana include town planning, regulation of land use, and issuance of development licenses. These functions are regulatory in nature and are prescribed by state law.
What is the significance of the CCI's decision in this case?
The significance of the CCI's decision is that it clarifies the boundaries between statutory functions and commercial activities. It reinforces the idea that regulatory and statutory functions of government bodies cannot be examined under competition law, which is designed to address issues in the commercial market.
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