Lahore Gymkhana Pays Just Rs. 5,000 Annual Rent for Land Valued at Up to Rs. 218 Billion
A Punjab Assembly committee has questioned how Lahore Gymkhana Club has continued paying just Rs. 5,000 in annual rent for more than 100 acres of prime government land in Lahore.
The committee is investigating why the lease arrangement remained in place despite the land’s estimated value of Rs. 76 billion to Rs. 218 billion.
The special committee, chaired by MPA Samiullah Khan, raised concerns during a meeting on Wednesday after club Chairman Salman Siddique acknowledged that the rent was inadequate. Siddique said the club should be paying at least Rs. 10 million annually and expressed willingness to provide records and cooperate with the inquiry.
Punjab Assembly Panel Questions Lease Approval
The Member Colonies of the Board of Revenue told the committee that former chief minister Sardar Arif Nakai had verbally instructed officials to set the annual rent at Rs. 5,000 when the lease was extended. The official acknowledged that proper valuation and applicable legal principles had not been followed.
Committee members questioned how a verbal instruction could have formed the basis for such a significant concession and requested the complete record of the 1996 lease deed and its approval.
The committee stressed that the land belongs to the people of Punjab and that the club’s internal governance arrangements do not remove the government’s responsibility to oversee the use of state property. Members also sought verification of sanctioned building plans, government permissions and compliance with lease conditions, raising questions about responsibility for structural safety where approvals could not be established.
Committee Seeks Records and Wider Public Benefit
Members discussed options to increase public benefit from the land, including opening the club’s cricket ground to the public and relocating the club to a site near the Ring Road. They also questioned the use of public funds for an exclusive recreational institution occupying leased government land.
The committee directed relevant departments to submit detailed reports and tasked a fact finding committee under the Advocate General Punjab with framing questions, obtaining and verifying records, and submitting its findings within ten days.
At the close of the meeting, the chairperson directed that legal questions arising from the inquiry be referred to the Law Reforms Committee under the Punjab Assembly speaker for joint deliberation.
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