CCI Closes Abuse Of Dominance Plea Against Haryana Town Planning Authorities Over Statutory Development Charges
Pranav B Prem
The Competition Commission of India (CCI) has closed abuse of dominance complaints filed by real estate developer ILD Housing Projects Private Limited and industry body CREDAI–NCR against the town planning authorities of Haryana, holding that competition law does not apply to actions taken by statutory authorities while discharging regulatory functions under state legislation.
In an order dated December 16, 2025, a bench comprising Chairperson Ravneet Kaur along with Members Anil Agarwal, Sweta Kakkad and Deepak Anurag held that the Department of Town and Country Planning, Haryana (DTCP) and the Haryana Shehri Vikas Pradhikaran (HSVP) were performing statutory duties assigned to them under the Haryana Development and Regulation of Urban Areas Act and related laws. The Commission observed that these functions, though having economic implications, are essentially regulatory in nature and therefore fall outside the scope of the Competition Act, 2002.
The Commission noted that the complaints challenged the levy of External Development Charges (EDC) and Infrastructure Development Charges (IDC), along with interest and revision clauses, imposed as part of licensing conditions for real estate development projects. The developers alleged that these charges were imposed unilaterally, without any corresponding obligation on the authorities to complete external infrastructure within a fixed timeline. They further contended that the licence conditions were standardised and non-negotiable, amounting to abuse of dominant position under Section 4(2)(a)(i) of the Competition Act.
Rejecting these contentions, the CCI held that town planning, regulation of land use and issuance of development licences are statutory functions of the State and do not operate within a competitive market framework. On examining the legislative scheme, the Commission observed that the preamble and provisions of the governing statute make it clear that the DTCP is tasked with regulatory and statutory functions relating to licensing and urban development.
The Commission observed that activities carried out by the authorities, even if they involve collection of charges, cannot be characterised as commercial activities for the purpose of competition law. It held that regulatory actions flowing directly from statutory mandates cannot be examined for abuse of dominance under the Competition Act.
The CCI further relied on prior judgments of the High Courts and the Supreme Court which have upheld the legality of levying EDC and IDC under the Haryana town planning framework. It noted that courts have consistently held that the obligation of developers to pay such charges is independent of the pace at which external infrastructure is developed by the authorities. Revisiting these issues under competition law, the Commission observed, would run contrary to settled judicial precedent.
On the allegation of unfair and one-sided licence conditions, the Commission held that since such conditions are prescribed by statute and statutory rules, they cannot be treated as abusive conduct under competition law. The CCI emphasised that conditions flowing directly from legislation cannot be scrutinised as unilateral commercial impositions. Finding no prima facie case of abuse of dominant position, the Commission closed both information cases and dismissed all connected applications seeking interim relief.
Cause Title: ILD Housing Projects Pvt Ltd, Confederation of Real Estate Developer's Association of India- NCR (Informants) vs Department of Town and Country Planning, Haryana Shehri Vikas Pradhikaran
Case No: 14 of 2025
Coram: Chairperson Ravneet Kaur, Members Anil Agarwal, Sweta Kakkad, Deepak Anurag
