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The Competition Appellate Tribunal (CAT) has rejected stay pleas in two high-profile cases, allowing the Competition Commission of Pakistan (CCP) to proceed with the recovery of hefty penalties. The orders require companies to secure a portion of their fines upfront while ensuring compliance with ongoing enforcement.
Kingdom Valley Ordered to Deposit Half of PKR 150 Million Penalty
In the first case, M/s Kingdom Valley Pvt. Ltd. had sought a stay against CCP’s recovery proceedings, which the Tribunal denied. The CCP had previously attached the company’s bank accounts and recovered PKR 27 million. CAT has now directed Kingdom Valley to deposit 50 percent of the total PKR 150 million penalty, equivalent to PKR 75 million, and provide post-dated cheques for the remaining amount.
The Tribunal noted that a prima facie violation of the Competition Act, 2010 had been established. This, it said, justified denying a stay without the mandatory deposit. CCP had penalized Kingdom Valley for misleading marketing claims, including falsely advertising its project as located in Islamabad instead of Mouza Choora, Rawalpindi. The company also misrepresented links with the Naya Pakistan Housing Programme and claimed NOC approval without proper disclosure.
Earlier, Kingdom Valley challenged the CCP’s decision before the Islamabad High Court. In November 2025, the IHC dismissed the petition and referred the matter to CAT, where the appeal remains pending.
UDPL and IBL Required to Secure Half of PKR 40 Million Penalty
In a separate case, the CAT instructed M/s United Distributors (UDPL) and International Brands Limited (IBL) to submit a bank guarantee of PKR 20 million, representing 50 percent of their PKR 40 million penalty. The companies must also provide post-dated checks for the remaining amount to obtain a stay on recovery proceedings.
The CCP imposed the fines after determining that UDPL and IBL had entered an illegal non-compete agreement. The deal, which involved IBL paying over PKR 1.13 billion to UDPL, effectively blocked competition in the human pharmaceutical distribution market for three years. The Commission highlighted that the arrangement restricted market entry, harmed consumers, and violated Section 4 of the Competition Act, 2010, by operating without mandatory CCP approval.
These rulings reaffirm the CCP’s authority to enforce competition law penalties and ensure companies comply with regulatory standards. The CAT’s decisions signal stricter scrutiny of misleading marketing practices and anti-competitive agreements in Pakistan’s corporate sector.
