CCP issues notice to PTI leader Aleem’s company for deceptive claims

ISLAMABAD: The Competition Commission of Pakistan (CCP) has issued a show cause notice to Vision Developers (Private) Limited, owned by senior Pakistan Tehreek-e-Insaf (PTI) leader Aleem Khan, to respond to allegations leveled by a complainant that his company is selling plots in an unauthorized and unapproved housing scheme in Lahore.

An inquiry conducted by the CCP on the complaint it received found that the claims of the company about the approval status, location and suitability of use of its housing scheme were unsubstantiated, false and misleading.

The notice, copies of which and of other documents provided to The News, directed the firm to appear before the CCP on Jan 25 to explain as to why an appropriate order may not be passed and or a penalty for the violations committed by it may not be imposed.

According to the notice issued on December 30, 2016, Vision Developers (Private) Limited is engaged in the business of promotion and development of housing schemes including the Park View Villas and is an undertaking in terms of section (2(1)(q) of the Competition Act (CA), 2010.

It said that one Mubashir Javed filed a complaint with the CCP, alleging that the company is engaged in the business of offering sale of residential and commercial plots in an unauthorized and unapproved housing scheme namely, the Park View Villas by concealing the material facts from the consumers and investors.

The notice said it was further alleged that the company claims Park View Villas located at River Edge Housing Scheme whereas River Edge Housing Scheme is an adjacent housing scheme fully approved by the Lahore Development Authority (LDA) and these claims are deceptive and misleading on its part and also violation of the section 10 of the CA.

Pursuant to section 37(2) of the CA, an inquiry was initiated by the CCP, which has been concluded vide report dated December 15, 2016, which was made an integral part of the show cause notice.

The notice said that in terms of the 22-page inquiry report prepared by a three-member team, it appears that the company claims relating to Pak View Villas’ approval status, location and suitability of use on multiple forms of promotional materials and advertisements are unsubstantiated and therefore, prima facie, amount todistribution of false and misleading information lacking reasonable basis in violation of section 10(1) read with section 10(2) of CA.

According to the notice, the CCP is mandated under the CA to ensure free competition in all spheres of commercial and economic activity to enhance  economic efficiency and to protect consumers from anti-competitive behaviour including deceptive marketing practice.

The Vision Developers (Private) Limited was called upon to show cause in writing within 14 days from the date of receipt of this notice and to appear and place before the CCP facts and material in support of the contentions and to avail the opportunity of being heard through an authorized representative.

The inquiry report contained several letters and orders of different government departments that showed the disapproval of the housing scheme.