LAHORE: Lahore Gymkhana Club has come under fire in the Punjab Assembly after the ruling and opposition benches united over the issue of the elite club not paying its lease for decades.
In a rare show of unity in the provincial legislature, the Punjab government and the opposition came together to resolve the long-standing issue of the Gymkhana Club’s failure to pay the lease of 1,090 kanals of prime government land leased at just 50 paisa per kanal in the provincial capital. Despite occupying the land for decades, the Lahore Gymkhana Club has not made any lease payments, a matter of grave concern to lawmakers.
The issue was first raised in the Punjab Assembly a few months ago, with lawmakers highlighting the disparity between the club’s significant profits and its low lease rate and market value. The lease agreement, which is considered illegal due to its below-market terms, has sparked demands for renegotiation to ensure fair compensation for the national exchequer.
In response to mounting pressure, Speaker Malik Ahmed Khan formed a committee headed by MLA Samiullah to look into the matter. The committee’s report, presented during the current assembly session, revealed that the Gymkhana Club had been occupying expensive government land for decades without fulfilling its lease obligations. The club had also illegally expanded onto additional land in Bagh Jinnah.
The Gymkhana Club, located in one of Lahore’s most upscale areas, charges a minimum annual membership fee of Rs 1 million, which includes luxurious amenities including fine dining and a large golf course. The inquiry committee explained that the original lease was cancelled in 1990 due to the club’s non-compliance while powerful figures within the club were able to retain possession of the land without paying the agreed rent.
Opposition member Ijaz Shafi asserted that both the government and the opposition are united in their demand for the Gymkhana Club to either make the due lease payments and renegotiate the lease at the current market rate or face demolition of its buildings and land reclamation as has been done against the Royal Palm Club.
The club has not yet responded to the allegations but confirmed the formation of a 12-member committee to review the situation and determine appropriate legal action.
