15 Crore Fine Imposed on Famous Housing Society

The Competition Commission of Pakistan (CCP) has taken action against deceptive marketing practices in the real estate sector. They have imposed a hefty fine of Rs. 150 million (15 crores) on Kingdom Valley (Pvt.) Limited to misleading advertisements concerning its housing project.

The CCP’s investigation was initiated through a suo motu notice by its Office of Fair Trade. Kingdom Valley falsely advertised its project as “Kingdom Valley Islamabad.” The project is located in Mouza Choora, Tehsil & District Rawalpindi, not Islamabad. This misrepresentation could lead customers to believe that they are investing in a more prime location than it is.

The housing society misrepresented its affiliations with the “Naya Pakistan Housing Program (NPHP)” and the “Naya Pakistan Housing and Development Authority (NAPHDA). These false claims leveraged the government housing initiatives, misleading consumers into believing the project had official backing and guarantees that it did not.

Kingdom Valley also publicized its project as NOC-approved without providing accurate disclosure regarding its approval status. A properly disclosed NOC is crucial for the legality and development of any housing project.

The CCP’s adjudicating bench, comprising Saeed Ahmed Nawaz and Abdul Rashid Sheikh, concluded that Kingdom Valley (Pvt.) Limited violated Sections 10(2)(a) and 10(2)(b) of the Competition Act, 2010. These sections specifically prohibit the dissemination of false information that is likely to deceive consumers. A penalty of Rs. 75 million was levied for each of the two primary violations, resulting in a total fine of Rs. 150 million.

Kingdom Valley did not comply with directives issued by the CCP, further demonstrating a disregard for regulatory oversight. The company has not even filed financial records with the Securities and Exchange Commission of Pakistan (SECP) for several years. It raises significant concerns about its overall governance and accountability.