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Naresh ChandaNaresh Chanda 

custom label in validation rule error message

Hi, I am trying to show a error message in validation rule and used something like this - $Label.LBL_ItemValidations or VALUE(
$Label.LBL_ItemValidations), but the actual mesage is not shown and instead only the $Label.LBL_ItemValidations is shown. This is a serious limitation, as we cannot show multi language error messages on validation rules.
SwethaSwetha (Salesforce Developers) 
HI Naresh,
As you stated this is currently a limitation in salesforce. We already have an idea on Salesforce Idea Exchange for the same.

See "Use Custom Labels in Validation Rule Error Messages"

Please consider upvoting this idea so that the product development team can consider implementing this as a feature in upcoming releases based on the number of votes.
Hope this helps you. Please mark this answer as best so that others facing the same issue will find this information useful.
Thank you