Varun Goel Vs Eldeco Infrastructure & Properties Ltd

The Director General of Anti-profiteering (DGAP) found Eldeco Infrastructure & Properties to have indulged in profiteering by not passing on the benefits of input tax credit (ITC) of Rs 41.82 crore pertaining to the period between July 1, 2018 and August 31, 2018 to homebuyers.  Once the DGAP submitted its findings, the builder accepted its fault and paid Rs 59.57 crore (Rs 41.82 crore plus 18 per cent interest) to all the homebuyers by February 5, 2019. While the authority accepted the fact that the builder passed on the ITC benefit to buyers but it also considered the fact that it did so only after initiation of proceedings against it, and hence there was clear case of violation.  But the anti-profiteering authority also realised that at the time of violation (1 July 2017-31 August 2018), there was no penalty prescribed under the law for such violations, and hence it withdrew the penalty proceeding against the builder.