Islamabad, December 16, 2025 — The Competition Appellate Tribunal (CAT) has rejected appeals in two separate cases, clearing the way for the Competition Commission of Pakistan (CCP) to proceed with recovery of penalties imposed for violations of the Competition Act, 2010.
In the first case, the Tribunal dismissed the appeal filed by M/s Kingdom Valley Pvt. Ltd., which had sought a stay on recovery proceedings initiated by the CCP. Following the Commission’s enforcement action, the CCP attached the company’s bank accounts and recovered PKR 27 million, according to a CCP press release issued on Tuesday. The CAT further directed the company to deposit 50 percent of the total penalty—amounting to PKR 75 million—and submit post-dated cheques for the remaining amount.
In its order, the Tribunal observed that a prima facie violation of the Competition Act, 2010 had been established. It ruled that a stay against recovery could not be granted without the mandatory deposit of half of the imposed penalty.
The CCP had earlier imposed a PKR 150 million fine on Kingdom Valley Pvt. Ltd. for deceptive and misleading marketing practices. These included falsely advertising the housing project as being located in Islamabad when it is situated in Mouza Choora, Rawalpindi, misrepresenting an association with the Naya Pakistan Housing Programme, and making misleading claims regarding NOC approvals without proper disclosure.
Previously, Kingdom Valley had challenged the CCP’s decision before the Islamabad High Court (IHC). In November 2025, the IHC dismissed the petition and referred the matter to the CAT, where the appeal remains pending without any stay order.
In a separate matter, the CAT directed M/s United Distributors (UDPL) and International Brands Limited (IBL) to furnish a bank guarantee of PKR 20 million—representing 50 percent of the penalty—along with post-dated cheques for the remaining amount to secure a stay on recovery proceedings.
The case involves penalties of PKR 40 million imposed by the CCP on UDPL and IBL for entering into an illegal and anti-competitive non-compete agreement in violation of Section 4 of the Competition Act, 2010. The CCP found that IBL had paid more than PKR 1.13 billion to UDPL to stay out of the human pharmaceutical distribution market for three years, an arrangement deemed to constitute market sharing that restricted competition, hindered market entry, and harmed consumers.