Home Global Village Competition Commissions of Pakistan catches housing scheme lies red handed

Competition Commissions of Pakistan catches housing scheme lies red handed

Competition Commissions

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New and struggling Real Estate Schemes seem to be dependent on fluke marketing and exaggerations. However, three real estate developers took it a little beyond harmless exaggeration. The Compe­tition Commission of Pakistan (CCP) has imposed penalties on three real estate builders for using deceptive marketing campaigns for their housing schemes, in violation of Section 10 of the Competition Act 2010.

In its order, CCP slapped a penalty of Rs. 2.5 million each against Eden Builders (Pvt) Ltd and Green Field Developers (Pvt) Ltd and Rs.10 million on Vision Developers (Pvt) Ltd for telling plain lies to their unsuspecting buyers.

On an obvious note, it has been highlighted in the CCP order that for the masses it almost takes a lifetime of savings or obtaining credit or loans to make such an investment for securing a more stable future.

Every housing scheme is in Islamabad: The oldest real estate hoax is playing with the Islamabad complex. Green Field Developers were one of the many companies to try and sell the idea that they exist in the capital territory. The CCP slapped a fine and pointed out to the developer that their housing scheme, ‘Green City’, was in fact located in Fateh Jang.

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The company went on to affixing logos of various governmental bodies in its advertising campaigns without obtaining the necessary approvals to do so; Green Field was charged with distributing misleading information and was asked to take down the advertisements that the government did not sanction.

A few minutes from the central city:  Developers at Eden Builders had made hilariously false claims about the location of its housing scheme ‘Eden Life Islamabad’, bravely stating that it was situated at a drive of 12 minutes from the Serena Hotel Islamabad and five minutes from the CDA Enclave and Chak Shahzad. Unless you own a Ferrari and the Lehtrar road is a seven lane highway; the exaggeration is a bit out of proportion.

“This transactional decision is a much more complex one as against buying a household or shelved product from a supermarket,” the order stated, with the observation that higher burden is placed on businesses which operate in the real estate market.

Moreover, while the advertisements also indicated the price of the various sized plots, there was no clear mention of the development charges to be recovered later. Eden Builders had also failed to show that it had the approval of the Capital Development Authority for this housing scheme on its name.

Home with a view (but without an approval): A Lahore-based real estate company, Vision Developers, had obtained the approval of the Lahore Development Authority (LDA) for a housing society, River Edge Housing Scheme. The company subsequently applied for NOC from the LDA for a new housing scheme, Park View Villas, which was denied by LDA for being located close to a riverbank, which could be prone to flooding. Despite this, Vision Developers advertised the new unapproved scheme under the deceptive name of ‘Park View Villas at River Edge Housing Society’, giving the impression that the new scheme was an extension of the earlier-approved River Edge Housing Scheme.

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Retracting, Eden Life and Green Field appeared before the commission, owned up to the flukes and gave commitments to the commission not to engage in deceptive marketing practices again. Vision Developers, however, never appeared before the CCP despite repeated notices being served to the company.

Eden Life and Green Field gave commitments to the commission not to engage in deceptive marketing practices again. Vision Developers, however, never appeared before the CCP despite repeated notices being served to the company.

The Compe­tition Commission of Pakistan (CCP) has imposed penalties on three real estate builders for deceptively using marketing campaigns for their respective housing schemes, in violation of Section 10 of the Competition Act 2010. In its order, CCP slapped a penalty of Rs. 2.5 million each against Eden Builders (Pvt) Ltd and Green Field Developers (Pvt) Ltd and Rs. 10 million on Vision Developers (Pvt) Ltd for lying to their buyers.

The CCP has said that the Green Field Developers marketing campaign for its housing scheme ‘Green City’ made the false claim that it was located in Islamabad whereas it was in Fateh Jang. Moreover, by affixing logos of various governmental bodies in its advertising campaigns without obtaining the necessary approvals to do so, Green Field Developers was distributing misleading information.

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Eden Builders had made false claims about the location of its housing scheme ‘Eden Life Islamabad’ stating that it was situated at a drive of 12 minutes from the Serena Hotel Islamabad and five minutes from the CDA Enclave and Chak Shahzad.

Retracting, Eden Life and Green Field appeared before the commission, owned up to the flukes and gave commitments to the commission not to engage in deceptive marketing practices again.

Moreover, while the advertisements also indicated the price of the various sized plots, there was no clear mention of the development charges to be recovered later. Eden Builders also failed to show that it had the approval of the Capital Development Authority for this housing scheme on its name.

A Lahore-based real estate company, Vision Developers, had obtained the approval of the Lahore Development Authority (LDA) for a housing society – River Edge Housing Scheme.

The company subsequently applied for NOC from the LDA for a new housing scheme – Park View Villas – which was denied by LDA for being located close to a riverbank, which could be prone to flooding. Despite this, Vision Developers advertised the new unapproved scheme under the deceptive name of ‘Park View Villas at River Edge Housing Society’, giving the impression that the new scheme was an extension of the earlier-approved River Edge Housing Scheme.

Eden Builders had also failed to show that it had the approval of the Capital Development Authority for this housing scheme on its name.

Eden Life and Green Field gave commitments to the commission not to engage in deceptive marketing practices again. Vision Developers, however, never appeared before the CCP despite repeated notices being served to the company.

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On an obvious note, it has been highlighted in the CCP order that for the masses it almost takes a lifetime of savings or obtaining credit or loans to make such an investment for securing a more stable future.

“This transactional decision is a much more complex one as against buying a household or shelved product from a supermarket,” the order stated, with the observation that higher burden is placed on businesses which operate in the real estate market.

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