The Ministry of Defence granted Rs 556.5 million worth of commercial lease free of cost to private entities in violation of CLAR 1973 Rules, Audit Report on Defence Services 2015-16 revealed. According to the report, Cantonment Board Chaklala had acquired an area of 712 kanals for expansion of Ayub Park on June 1968. Out of acquired land, an area measuring 253.44 kanal was leased out to Al-Shifa Eye Trust by the Ministry of Defence; free of rent for construction of hospital by violating the provisions of LAC 1894 which disallows change of purpose in respect of acquired land.
Further, a piece of land measuring 30.53 kanals falling on main GT road was allowed for establishment of commercial complex and petrol pump, CNG stations subject to payment of prescribed amount of premium and other dues. It was further noticed that sanction for commercial lease was accorded by the Ministry on payment of token premium of Rs 10.
The audit report further disclosed that the cantonment boards of Gujranwala, Peshawar and Kamra failed to recover Rs 5.9 billion of rent from commercial activities. While examining the record held with certain cantonment boards it was found that commercial activities were being run within Cantt premises on A-1 land, however, rent against those activities was not being recovered.