CDA flags property schemes outside ICT using ISB identity

Islamabad: The Capital Development Authority (CDA) has asked the Competition Commission of Pakistan (CCP) to take action against dozens of private housing schemes accused of misleading buyers by using Islamabad’s name and sector designations despite being located outside the Islamabad Capital Territory (ICT).

In a formal communication to the CCP, the CDA identified 34 housing schemes using terms such as “Islamabad” and “Capital” in their branding, while another 27 projects were found claiming association with Islamabad sectors despite being situated beyond ICT limits.

According to the CDA, several developers are marketing projects as extensions of sectors including G-15, G-17, F-17 and E-18 to create the impression that the schemes are part of Islamabad’s planned urban framework and approved by the CDA.

The authority clarified that many of these projects are actually located in Rawalpindi, Taxila, Fateh Jang, Attock and other adjoining areas of Punjab, falling outside CDA jurisdiction and, in some cases, outside any formal regulatory oversight.

The CDA said the practice was intended to exploit Islamabad’s premium image and inflate property values by misleading buyers into believing the projects enjoy the same legal status, infrastructure standards and planning protections as sectors within the federal capital.

It further stated that ICT boundaries terminate at the 17 series sectors and that no Islamabad sectors exist southwest of A-17 to I-17.

The authority warned that such marketing could amount to deceptive advertising and unfair trade practices under Pakistani law, potentially exposing investors to financial and legal risks.

The CDA also urged the CCP to initiate proceedings against developers, sponsors and marketing firms involved in the practice. In addition, it recommended that the Pakistan Electronic Media Regulatory Authority (PEMRA), Pakistan Telecommunication Authority (PTA) and the Press Information Department (PID) restrict advertisements falsely portraying projects as part of Islamabad.

Advising caution, the CDA asked prospective buyers to verify a project’s location and regulatory approvals before investing.

“Any investment made in housing schemes outside Islamabad Capital Territory on the basis of misleading advertisements shall be at the sole risk of the purchaser,” the authority said.