Lease terms of Gymkhana Club: Punjab PA convenes special public committee hearing

LAHORE: In a significant move towards transparency and accountability, the Punjab Assembly convened a special public committee hearing on Monday to scrutinize the lease terms of Lahore’s historic Gymkhana Club.

Occupying 117 acres of prime real estate, the club has raised concerns over its remarkably low annual rent of Rs 5,000, which many argue is far below the current market rate.

Chaired by Sami Ullah Khan, the committee aims to address discrepancies in the lease and management of state property.

The committee has instructed government departments to provide detailed responses to these concerns at the next hearing. Determining the accurate market value of the property is crucial to reassess the rent owed to the state. The Law Department will review lease agreements to explore recovering lost revenue and holding responsible parties accountable.

According to the details the hearing was initiated under the recently updated Rules of Procedures which grant enhanced powers to assembly committees to address critical issues with open hearings instead of in camera briefings. This initiative hopes to contribute to a more transparent and accountable legislative environment whilst dealing with issues of Public interest and concern.

The committee’s mandate was established during the House session on the 9th September 2024, where the Speaker Muhammad Malik Ahmad Khan constituted Special Committee No 06 in accordance with Rule 187 of the Rules of Procedure of the Provincial Assembly of the Punjab 1997. This action was taken following a motion raised by Amjad Ali Javed (MPA) regarding the terms of the Gymkhana Club lease.

The committee, chaired by Sami Ullah Khan (MPA PP-145), was tasked with addressing concerns about the apparent discrepancies in the lease and management of the state’s property.

One of the key concerns raised during the hearing was the extraordinarily low annual rent of Rs 5000 for such valuable real estate, which many members argued is far below the current market rate. Members pointed out that in the early 1900s, the rent was set at Rs 1600, indicating that the present rate does not reflect the true value of the land in question which stands at roughly 60-70 billion rupees at a minimum.

It was also brought to attention that the Club also occupies an additional 3 acres of agricultural land within Lawrence Gardens Lahore which has not previously been accounted for.

Additionally, several committee members raised questions about the Club’s construction activities on state land, noting that no proper permissions had been obtained for building developments.

Concerns were also raised about the Club’s high membership fees and monthly charges, which generate significant revenue while the Club continues to pay a negligible amount in rent to the state. It was revealed during the session that, according to sources, no audit has ever been conducted of Gymkhana Club’s properties or its various structures.

The Club has reportedly refused to respond to inquiries from the Public Accounts Committee, which raises further questions about its accountability and transparency.

The committee has instructed government departments to provide detailed responses to these concerns at the next hearing. It was stressed that determining the accurate market value of the property is crucial in order to reassess the rent that should be paid to the state.

The Law Department has been requested to review all lease agreements and related documents thoroughly to explore the potential for recovering lost revenue and holding the responsible parties accountable for financial discrepancies. Represent-atives from the Gymkhana Administration are also expected to be invited to the subsequent sessions of the committee.

Copyright Business Recorder, 2024