The Competition Appellate Tribunal (CAT) has upheld a penalty of Rs. 35 million imposed on Kingdom Valley (Pvt.) Limited by the Competition Commission of Pakistan (CCP), affirming that the real estate developer misled consumers through false and deceptive marketing of its housing project.

The case stems from findings that the company promoted its project as “Kingdom Valley Islamabad” despite it being located in Mouza Choora, Rawalpindi. The Tribunal noted that this branding was used across billboards, social media, and promotional campaigns, creating a misleading impression of a prime Islamabad location to attract buyers at higher prices. It was also observed that the project was advertised as “NOC approved” even before receiving formal approvals, which indicated a deliberate attempt to influence consumer decisions.

In its detailed judgment, the Tribunal agreed with CCP’s assessment that the advertisements contained clear misrepresentation. It held that the project’s repeated portrayal as being in Islamabad, despite its actual location in Rawalpindi, amounted to a significant violation of consumer protection standards. The bench also pointed out that promotional activity began prior to obtaining required approvals, reinforcing concerns over deceptive intent.

Rejecting the company’s argument that such practices are common in the real estate sector, the Tribunal stated that widespread violations cannot justify misconduct, remarking that clear deception cannot be excused on industry trends.

The Tribunal maintained the penalty under Section 10(2)(b) of the Competition Act, describing the misrepresentation of location as a serious violation that directly impacts consumer trust, particularly in the real estate market where buyers are vulnerable to exaggerated claims and misleading advertisements.

It further directed that the penalty must be deposited within 20 days, failing which the original order of the Commission would be fully restored, potentially increasing the company’s financial exposure.