Competition Commission of Pakistan (CCP) fined Eden Builders, Green Field Developers & Vision Developers for misleading marketing and advertisement.
Fines were imposed because these developers violated Section 10 of Competition Act 2010. The penalty imposed on these developers was:
- Vision Developers (Pvt.) Limited – Rs. 10 million
- Eden Builders (Pvt.) Limited – Rs. 2.5 million
- Green Field Developers (Pvt.) Limited – Rs. 2.5 million
Eden Builders (Pvt.) Limited in their advertisement of housing scheme ‘Eden Life Islamabad’ claimed that it is located on just 5 minutes from CDA Enclave & 12 minutes drive from Serena Hotel, this was deceptive. Further they failed to mention that the prices advertised were exclusive of the development charges which will be recovered later.
Eden Builders also failed to get approval from Capital Development Authority (CDA) but claimed that the project was approved by CDA.
Similarly Green Field Developers (Pvt.) Limited in advertisement claimed that their project ‘Green City’ was located in Islamabad while it was in Fateh Jang. They also failed to get approval from government departments before using their official logos for advertisement purposes.
In its order, CCP slapped a penalty of Rs2.5 million each against Eden Builders (Pvt) Ltd and Green Field Developers (Pvt) Ltd and Rs10m on Vision Developers (Pvt) owned by aleem khan Ltd for lying with their buyers.Sources pic.twitter.com/M89zTSQIEY
— Abdul Qayyum Siddiqui (@QayyumReports) January 3, 2018
Vision Developers (Pvt.) Limited which was fined Rs. 10 million failed to appear in front of CCP despite repetitive notices. It failed to get approval from Lahore Development Authority (LDA) for its project ‘Park View Villas’ which was located near River Bank.
They advertised the project as ‘Park View Villas at River Edge Housing Project’ deceiving the customers that it is an extension of the previous approved project.
It seems that Real estate developers in Pakistan thought that misleading advertisement will increase their sales without risk of any action form government but CCP proved them wrong.