LAHORE: A member of the provincial assembly (MPA) from the ruling Pakistan Muslim League-Nawaz (PML-N) alleged that Lahore Gymkhana, a prestigious private club in the capital, was paying a meagre Rs417 per month as rent for the public land it is built on.
As per the media reports, Lahore Gymkhana Club is again in headlines and it’s the monthly rent of the club founded in 1878 that is less than $2 (Rs500).
The club spreads over 117.03 acres and to everyone’s surprise, the administration pays a mere Rs5,000 per annum as a ‘token rent’ to the provincial government, as per lease deed inked between club and the provincial government of Punjab.
Following the claim and media reports, Punjab Assembly speaker ordered finance minister to verify this claim.
A notice from the office of the additional deputy commissioner to the Club on August 26, 2020, highlighted the non-payment of rent since 2011 and reiterated the lease terms for an area of 1,133 kanals, one marla, and 80 square feet, with an annual rent of Rs5,000.
According to the reports, the lease agreement, signed in 1996 between the then deputy commissioner of Lahore on behalf of the Punjab government and the secretary of Lahore Gymkhana Club, did indeed lease over 1,000 kanals of public land for 50 years at an annual rent of Rs5,000, which translates to Rs417 per month.
“The lessee will pay the rent at a token rate of Rs5,000 per annum,” reads the agreement. The agreement also stipulates that the lessee is responsible for paying all applicable taxes for the land.
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The agreement further states, “The lessee will establish Gymkhana Club on the said land to provide facilities in the public sector.”
The lease, effective from 2000, remains valid until 2050.
Last year, Lahore High Court (LHC) rejected Lahore Gymkhana Club’s appeal against the Punjab Information Commission’s order to disclose details of its leased land and donor records. The leading private club was directed to provide this information.
LHC judge emphasized that the land, leased for 50 years at a nominal fee of Rs5,000 per annum, is situated in one of Lahore’s most valuable areas, and it valued Rs15 billion
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