LAHORE: A special committee of the Punjab Assembly, chaired by MPA Samiullah Khan, came down hard on decades of government oversight failures after Lahore Gymkhana Club Chairman Salman Siddique conceded that the annual rent of Rs5,000 paid for over 100 acres of prime state land in the provincial capital was wholly inadequate.
Appearing before the committee alongside members of the club’s management, Mr Siddique expressed surprise at the nominal rate given the vast acreage involved and the club’s vastly improved financial footing. Contrasting the institution’s current financial standing with its constraints during the 1990s, he admitted that the club should be paying at least Rs10 million annually, while expressing willingness to cooperate with the ongoing inquiry and share records.
Committee members noted that this admission from the club’s own top leadership underscored the urgency of determining why successive state authorities allowed such a massive concession to persist without meaningful scrutiny. They stressed that the onus rested squarely on public institutions mandated to protect state land, enforce lease terms, and ensure transparent usage.
During the session, the member colonies of the board of revenue revealed that then chief minister Sardar Muhammad Arif Nakai, who was also a member of the club, had verbally directed the fixation of a token Rs5,000 annual rent for the lease extension in 1996, bypassing proper land valuation and relevant legal principles. Perturbed by how a mere verbal instruction could underpin such a major agreement, lawmakers demanded the complete documentary record detailing the legal authority and approval process behind the 1996 lease deed.
PA body constitutes fact-finding committee to frame specific queries, verify records, and present comprehensive report within 10 days
Emphasising that the land ultimately belongs to the people of Punjab, the committee was presented with estimates valuing the prime property between Rs76 billion and Rs218 billion. Members questioned the state’s failure to secure a fair public return on an asset of this scale and firmly rejected any notion that the club’s internal corporate governance shielded it from state oversight, maintaining that institutional autonomy cannot supersede accountability for public property.
Touching upon structural approvals, Mr Siddique affirmed that while the club fulfills its corporate and tax obligations under the Companies Act 2017, he has struggled to locate internal records regarding official building sanctions.
In response, lawmakers called for strict verification of sanctioned building plans, statutory permissions, and compliance with lease terms, raising safety concerns over structures lacking documented approvals.
On the issue of an independent state audit, Mr Siddique noted that the matter remains pending before the Supreme Court and assured adherence to its eventual verdict, a position echoed by management committee member Tasneem Noorani.
The panel also explored proposals aimed at broader public utility, such as opening the club’s cricket ground to the general public or relocating the facility near the Ring Road, while questioning why public funds were ever spent on an exclusive recreational club occupying state land.
To take the probe forward, the committee directed the Lahore Development Authority, Parks and Horticulture Authority, Federal Board of Revenue, and other relevant bodies to submit detailed jurisdictional reports.
Furthermore, a fact-finding committee headed by the Advocate General Punjab, comprising officials from the Board of Revenue, Metropolitan Corporation Lahore, Law department, Agriculture department, and the deputy commissioner, had been assigned to frame specific queries, verify records, and present a comprehensive report within ten days.
Concluding the session, the chairperson directed that legal questions stemming from the proceedings be forwarded to the high-powered Law Reforms Committee, headed by Speaker Malik Muhammad Ahmad Khan, for joint deliberations aimed at fixing responsibility for oversight lapses and ensuring the lawful use of public land.
Published in Dawn, October 22nd, 2026
The post Lahore Gymkhana’s low rent attributed to ‘decades of oversight failures’ appeared first on Dawn – Home.
