Punjab Assembly’s Special Committee has questioned Lahore Gymkhana Club paying Rs5,000 in annual rent for more than 100 acres of prime state land in Lahore, with the club’s chairman acknowledging that the amount was inadequate and saying that the club should pay at least Rs10 million a year.
The committee, chaired by MPA Samiullah Khan, examined the lease arrangement on Wednesday, questioning government failure to review the rent and ensure an appropriate return from the land.
Appearing before the committee alongside members of the club’s Management Committee, Chairman Salman Siddique acknowledged concerns over the rent and offered to provide records and cooperate with the inquiry.
He stated that he was surprised that the club continued to pay such a nominal amount, given the area it occupied and its improved financial position.
Siddique said that the club should pay at least Rs10 million annually, contrasting its current financial circumstances with the financial constraints it faced during the 1990s.
The Member Colonies of the Board of Revenue told the committee that former chief minister Sardar Arif Nakai had verbally directed officials to fix the annual rent at Rs5,000 when extending the lease.
The official acknowledged that authorities had not followed proper valuation procedures or applicable legal principles when granting the concession.
Committee members questioned how a verbal instruction could determine the terms of a lease covering more than 100 acres of state land. They sought the complete documentary record to establish the approval process and the legal authority behind the 1996 lease deed.
The committee stressed that the land belonged to the people of Punjab and cited estimates placing its value between Rs76 billion and Rs218 billion. Members questioned why successive government authorities had failed to secure an appropriate return from an asset of that value.
They also rejected the suggestion that the club’s internal governance arrangements placed its affairs beyond government scrutiny, maintaining that institutional autonomy did not remove its accountability for the occupation and use of state land.
The committee sought verification of sanctioned building plans, government permissions and compliance with lease conditions. Members also questioned who would bear responsibility for structural safety if the club could not establish the required approvals.
During the proceedings, members discussed options to increase public access to 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 operating on leased state land.
The committee directed the relevant departments to submit detailed reports on matters falling within their respective jurisdictions. It also tasked a fact-finding committee under the Advocate General Punjab with framing specific questions, obtaining and verifying relevant records, and submitting its report within ten days.
Committee chairperson Samiullah Khan further directed that legal questions arising from the inquiry be referred to the Law Reforms Committee under the Punjab Assembly speaker for joint deliberation.
