A Punjab Assembly committee has questioned why the Lahore Gymkhana Club pays just Rs. 5,000 in annual rent for more than 100 acres of prime government land in Lahore, despite estimates placing the property’s value between Rs. 76 billion and Rs. 218 billion.
The inquiry has renewed scrutiny of the long-running lease arrangement, the approval process and the government’s oversight of public land. During a meeting chaired by MPA Samiullah Khan, club chairman Salman Siddique acknowledged that the rent was inadequate and said the club should be paying at least Rs. 10 million annually.
Siddique also expressed willingness to provide records and cooperate with the committee’s investigation, according to reports of the proceedings.
The valuation figures are estimates cited during the inquiry, not a final determination of the land’s market value or the legal status of the lease.
Punjab Assembly Seeks Explanation for Gymkhana Lease
The committee questioned how the annual rent was fixed at Rs. 5,000 and why the arrangement continued despite the property’s substantial estimated value.
The Member Colonies of the Board of Revenue told the panel that former Punjab chief minister Sardar Arif Nakai had verbally instructed officials to set the rent at that amount when the lease was extended. The official acknowledged that proper valuation and applicable legal principles had not been followed.
Committee members questioned whether a verbal instruction could provide a sufficient basis for granting such a significant concession on state-owned land. They sought the complete record of the 1996 lease deed, including the approval process and supporting documentation.
The controversy concerns more than the amount charged. It also raises questions about the authority responsible for approving the arrangement, the legal provisions governing the lease and whether public assets have been managed in the province’s broader financial interests.
A Dawn report on the Lahore Gymkhana land controversy provides further background on the committee’s demand for original approval records and a clear legal justification for the rent.
Building Approvals and Government Oversight Under Scrutiny
The committee also examined whether buildings and other structures on the leased land had received the required government permissions.
Members requested verification of sanctioned building plans, relevant approvals and compliance with the lease conditions. They raised concerns about responsibility for structural safety if the necessary records could not be produced.
The inquiry places the focus on the obligations of both the club and the public authorities responsible for overseeing government property.
The club’s internal governance arrangements, committee members stressed, do not remove the state’s responsibility to ensure that public land is used in accordance with applicable laws and lease terms.
The investigation must establish which permissions were granted, whether the lease conditions were observed and which officials or departments were responsible for maintaining the relevant records.
Until the documents are examined, questions raised during the proceedings should not be treated as conclusive findings of wrongdoing.
Committee Considers Wider Public Benefit
Members also discussed ways to increase the public benefit derived from the land. Proposals included opening the club’s cricket ground to the public and relocating the club to a site near Lahore’s Ring Road.
The committee questioned whether public funds should support an exclusive recreational institution occupying valuable state land under a lease carrying such a low annual rent.
These discussions point to a wider policy issue: how the provincial government should balance existing lease agreements with its responsibility to protect public assets, ensure transparent land administration and deliver benefits to the wider population.
Any change to the current arrangement would require consideration of the lease terms, the applicable law and the findings of the inquiry.
Fact-Finding Committee Given 10 Days
The Punjab Assembly committee directed the relevant departments to submit detailed reports and provide the records needed to examine the lease, construction approvals and related matters.
A fact-finding committee operating under the Advocate General Punjab was tasked with framing questions, obtaining and verifying documents, and submitting its findings within 10 days.
The chair also directed that legal questions arising from the inquiry be referred to the Law Reforms Committee under the Punjab Assembly speaker for joint deliberation.
The next stage of the investigation will depend on the documentary record and the legal review. The findings could help clarify how the lease was approved, whether its conditions were followed and what options the government has for securing a fairer public return from the land.
For now, the central question remains whether the existing arrangement can be justified under the applicable law and public-land management rules. The committee’s findings and any subsequent government action will determine the future of the lease.
