A tribunal has upheld a Rs35 million penalty against Kingdom Valley. The real estate developer misled consumers about its housing project location and approval status.
The Competition Appellate Tribunal (CAT) endorsed the Competition Commission of Pakistan (CCP)’s original order from 27 May 2025. Consequently, Kingdom Valley (Pvt.) Limited must deposit the fine for deceptive marketing practices.
How Kingdom Valley Misled Consumers
The Commission observed deliberate deception by Kingdom Valley. The company portrayed its project as located in Islamabad. However, the actual site sits in Mouza Choora, Rawalpindi.
Billboards, social media, and other ads spread this false claim. The developer aimed to command higher property values. Furthermore, the project was widely promoted as “NOC approved.” This happened even before formal approvals were obtained. The CCP noted a calculated strategy to deceive buyers.
Tribunal Rejects Company’s Defence
In its detailed judgment, the CAT held firm. The company clearly misrepresented the project. Ads called it “Kingdom Valley Islamabad” despite its true Rawalpindi location.
The Tribunal also noted that advertisements launched prior to approvals reinforced the deception. Kingdom Valley argued that similar practices were common in the sector. The Tribunal rejected this defence entirely.
“The deception angle becomes insurmountable when violation occurs in broad daylight,” the Tribunal observed. It added that “two wrongs never make one right.”
Why the Penalty Stands
The Tribunal maintained the Rs35 million penalty. It termed the location misstatement a “grave default.” Such practices harm the real estate sector deeply. Consumers frequently lose significant money to exaggerated claims.
The ruling upholds the violation under Section 10(2)(b) of the Act. This section deals with false or misleading information to consumers.
A Strict Warning for Non-Payment
The Tribunal issued a clear deadline. Failure to deposit the penalty within 20 days has serious consequences. The Commission’s original order will restore in its entirety. As a result, the company would face higher financial liability.
A Strong Signal for Real Estate Sector
This ruling reinforces the CCP’s enforcement stance. Deceptive marketing will not be tolerated. The real estate sector has faced increasing scrutiny lately. Persistent consumer complaints and misleading ads triggered this crackdown. Therefore, this decision protects buyers from false claims.
