Lahore Gymkhana’s Rs5,000 rent sparks major land probe

A Punjab Assembly committee has questioned decades of government oversight after Lahore Gymkhana Club acknowledged that its annual rent of

LAHORE: A Punjab Assembly committee has questioned decades of government oversight after Lahore Gymkhana Club acknowledged that its annual rent of Rs5,000 for more than 100 acres of prime state-owned land was far below a reasonable rate.

The issue came under discussion during a meeting of a special committee of the Punjab Assembly chaired by MPA Samiullah Khan. Club Chairman Salman Siddique appeared before the panel alongside other management representatives and admitted that the existing rent was inadequate, given the size and value of the property.

Siddique said the club should be paying at least Rs10 million annually, considering its improved financial position. He also expressed willingness to cooperate with the inquiry and provide the relevant records.

Committee members questioned why successive governments had allowed such a low rental arrangement to continue without proper scrutiny. They stressed that public authorities were responsible for protecting state-owned land, enforcing lease conditions and ensuring that public assets generated a fair return.

During the proceedings, a Board of Revenue representative told the committee that former Punjab chief minister Sardar Muhammad Arif Nakai had verbally directed the fixation of an annual rent of Rs5,000 when the lease was extended in 1996. Lawmakers questioned the legality of such an arrangement and demanded the complete record showing how the lease was approved and valued.

The committee was informed that estimates of the land’s value ranged from Rs76 billion to Rs218 billion. Members expressed concern over the substantial difference between the property’s estimated worth and the nominal rent being paid by the club.

The panel also examined whether the club had obtained the necessary approvals for its buildings. Siddique said the institution fulfilled its corporate and tax obligations under the Companies Act 2017 but acknowledged difficulties in locating records relating to official building sanctions.

Lawmakers called for verification of building plans, statutory permissions and compliance with lease conditions. They also raised concerns about the safety and legality of structures for which approval documents might be unavailable.

The question of an independent government audit remains pending before the Supreme Court. Club representatives said they would comply with the court’s eventual decision.

The committee also discussed proposals to make the facility more accessible to the public, including opening its cricket ground for public use or relocating the club near the Ring Road. Members questioned the use of public funds for an exclusive recreational facility operating on state-owned land.

The Lahore Development Authority, Parks and Horticulture Authority, Federal Board of Revenue and other relevant departments were directed to submit detailed reports on their respective responsibilities.

A fact-finding committee headed by the Punjab advocate general has also been tasked with examining records, preparing specific questions and submitting a comprehensive report within 10 days. Its members will include representatives from the Board of Revenue, Metropolitan Corporation Lahore, Law Department, Agriculture Department and the deputy commissioner’s office.

The committee further directed that legal issues arising from the inquiry be referred to the high-powered Law Reforms Committee, headed by Punjab Assembly Speaker Malik Muhammad Ahmad Khan, for deliberations.

The inquiry aims to establish responsibility for the alleged oversight failures and determine how the state’s interests can be protected in the future.