CAT upholds Rs35 million penalty against Kingdom Valley

ISLAMABAD: (Web Desk) – The Competition Appellate Tribunal Pakistan has upheld an earlier decision by the Competition Commission of Pakistan against Kingdom Valley, maintaining a Rs35 million penalty over misleading marketing practices.

The tribunal supported the CCP’s order dated 27 May 2025, which found the real estate developer guilty of deceptive advertising related to its housing project.

According to the findings, Kingdom Valley misrepresented its project location by promoting it as “Kingdom Valley Islamabad,” while it is actually situated in Mouza Choora, Rawalpindi. The company used billboards, social media, and other marketing platforms to project a false impression of location and value.

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The CCP further noted that the project was marketed as “NOC approved” before receiving formal approvals, indicating a deliberate attempt to mislead buyers.

In its detailed judgment, the tribunal agreed with the regulator’s stance, stating that advertisements were launched prior to approvals and that the misrepresentation of the project’s location amounted to clear deception.

Rejecting the company’s argument that such practices are common in the real estate sector, the tribunal observed that widespread violations cannot justify misconduct, adding that “two wrongs never make one right.”

The tribunal upheld the penalty under Section 10(2)(b) of the Competition Act, terming the misleading claims a serious violation that could harm consumers, particularly in the real estate market where false advertising often leads to major financial losses.

It further warned that failure to deposit the penalty within 20 days would result in enforcement of the original CCP order in full, increasing the company’s financial exposure.

The ruling reinforces the CCP’s crackdown on deceptive marketing practices, especially in Pakistan’s real estate sector, which continues to face scrutiny over misleading advertisements and consumer complaints.