Islamabad Tribunal upholds fine against Kingdom Valley for misleading claims

ISLAMABAD: The Competition Appellate Tribunal (CAT) has upheld a penalty of Rs35 million imposed on Kingdom Valley (Private) Limited by the Competition Commission of Pakistan (CCP), ruling that the company misled consumers regarding the location and approval status of its housing project.

In its decision issued on May 27, 2025, the tribunal found that the project was marketed as “Kingdom Valley Islamabad” despite being located in Mouza Churrah, Rawalpindi. The company used billboards, social media, and other promotional channels to portray the project as being in Islamabad, allegedly to charge higher prices.

The ruling further noted that the project was widely advertised as “NOC approved” before obtaining official approval, calling it a deliberate strategy to deceive buyers. The tribunal rejected the company’s defense that such marketing practices are common in the real estate sector, stating that widespread violations only make the deception more evident.

Endorsing the CCP’s stance under Section 10(2)(b) of the Competition Act, the tribunal termed the misrepresentation of the project’s location a “serious default” and emphasized that providing false or misleading information to consumers constitutes a grave violation.
The tribunal directed that if the company fails to pay the fine within 20 days, the CCP’s original order will be fully enforced, potentially exposing the company to further financial liabilities.

Experts believe the ruling sets a significant precedent against deceptive advertising in Pakistan’s real estate sector and reinforces regulatory efforts to protect consumer rights.