Consumers and stakeholders have taken up the issue of illegal practices in real estate sector with the Competition Commission of Pakistan (CCP), particularly increased deceptive marketing practices by housing schemes and societies, reflecting lack of regulatory oversight on this sector.
In order to consult the stakeholders on competition related issues in the real estate sector, including deceptive marketing practices by private housing societies, the Competition Commission of Pakistan (CCP) held an open hearing here at the CCP office on Wednesday.
This was the first of three open hearings on the real estate sector in Pakistan to listen to the stakeholders and note their concerns on relevant issues. The open hearing will be held in Lahore and Karachi on April 17 and April 19 respectively.
The CCP has been receiving concerns and complaints from consumers regarding deceptive marketing practices by private housing societies. The CCP has also issued a few orders against some of these housing schemes for deceiving consumers. After the open hearings, the CCP may issue an opinion to the relevant government departments and ministries and may also consider complaints for further actions.
The open hearing was conducted by a CCP's bench, comprising the Chairperson Vadiyya Khalil, and Members Dr Shehzad Ansar and Dr Muhammad Saleem. The attendees were representatives of real estate associations including builders, developers, marketers, and consumers in large number.
Chairperson Vadiyya Khalil welcomed the participants and said that the real estate has the crucial role in the national economy. "Apart from contributing to the economic growth, the sector helps cater people's needs of having own home," she said. However, she noted that the CCP is receiving a number of concerns and complaints from consumers about deceptive marketing practices and other pertinent issues in the sector.
"We would like to listen to all stakeholders and take steps as per our mandate to give relief to the consumers and protect businesses from anti-competitive practices," she added.
The participants discussed in detail the problems being faced by them and said that many illegal practices including deceptive marketing practices are rampant in the sector. "The facilities being offered by the housing societies in advertisements never get materialized. Overbooking of plots, delay in giving possession of plots, and approvals by the relevant authorities for various housing schemes and societies are some of their problems people are facing, they said.
The representatives of marketing companies and developers complained about lack of regulatory oversight of the real estate sector. They said that due to no effective monitoring of real estate development projects, all stakeholders are suffering. They strongly recommended that there should be independent and effective regulation of the sector.
The sources said the regulation of real estate sector has been given to SECP in the Companies Act, 2017. However, it is yet to be seen how SECP is going to regulate the sector and what the division of regulatory powers is between SECP and departments like CDA, LDA, KDA etc.
Chairperson Vadiyya Khalil said that the CCP will analyze the deliberations of the open hearing and other pertinent facts and issue its opinion into the matter.