PA panel calls for Lahore Gymkhana audit

LAHORE:The Punjab Assembly Special Committee while taking notice over the adjournment motion regarding the lease amount of Lahore Gymkhana has called for receiving rent from the club as per the existing market rate. The PA committee also voiced concern as to why audit of Lahore Gymkhana was not done and members demanded audit of Lahore Gymkhana.

This is noteworthy that for the first time in the history of Punjab Assembly, the meeting of Special Committee chaired by MPA Sami Ullah Khan regarding the adjournment motion moved by Amjad Ali Javed was covered live by media unlike past when in camera sessions were held.

The meeting was attended by MPAs, including Rana Aftab Ahmad Khan, Rana Shahbaz, Amjad Ali Javaid, Rana Arshad, Syed Ali Haider Gilani, Pir Ashraf Rasool and other committee members across the divide. MPAs, including Mian Shahid, Rao Kashif Raheem Khan, Nawab Khan Gopang, Sardar Mansab Dogar also participated in the meeting.

Senior officials, including Secretary Law Asif Bilal Lodhi, member Board of Revenue Malik Abdul Waheed also attended the meeting. Senior official Asif Bilal Lodhi briefed the members of the committee about the history of Lahore Gymkhana leasing.

The main concerns raised during the meeting was the extraordinarily low annual rent of Rs5,000 for such valuable real estate, which many members argued is far below the current market rate.

Members of the committee pointed out that in the early 1900s, the rent was set at Rs1,600, indicating that the present rate does not reflect the true value of the land in question which stands at roughly Rs60-70 billion at a minimum.

The meeting was told that under Indian Company Act, Gymkhana was registered and the agreement was signed in 1913. He told that annual lease was fixed at Rs1,600 in the year 1916. Later, in the year 1960, through a lease agreement, an amount of Rs1,600 annually was to be paid till 2016.

A senior official told the meeting that audit of Lahore Gymkhana was never done and if the committee issued instructions, this matter could be taken up before the relevant body. MPA Ali Haider Gilani, who also heads a Public Accounts Committee of PA, stated that Gymkhana Club refused to carry out its audit through the PAC. Rana Shahbaz, an Opposition MPA, said that when officials, including Secretary Assembly held the membership of Gymkhana Club, how its audit could be done. Similarly, Ahmad Bhatti, another Opposition MPA, said many members of the House also possessed the membership of this club.

Sami Ullah Khan, expressing serious dismay over a very nominal lease charged from Lahore Gymkhana covering an area of around 117 acres of land in the heart of the provincial metropolis demanded all the departments concerned to come up with the relevant details in the next sitting of the meeting.

The meeting was also told the Club also occupies an additional three acres of agricultural land within Lawrence Gardens Lahore which has not previously been accounted for.The committee members raised questions about the Club’s construction activities on state land, noting that no proper permissions had been obtained for building developments. Later, a press release issued also stated that concerns were also raised about the Gymkhana Club’s high membership fees and monthly charges, which generate significant revenue while the club continues to pay a negligible amount in rent to the state.

It stated the hearing of the Special Committee was initiated under the recently updated Rules of Procedures which grant enhanced powers to assembly committees to address critical issues with open hearings instead of in-camera briefings.

This initiative hopes to contribute to a more transparent and accountable legislative environment whilst dealing with issues of public interest and concern.The committee’s mandate was established during the House session on the 9th September, 2024, where the Speaker Muhammad Malik Ahmad Khan constituted Special Committee No 06 in accordance with Rule 187 of the Rules of Procedure of the Provincial Assembly of the Punjab 1997.

This action was taken following a privileged motion raised by Amjad Ali Javed (MPA) regarding the terms of the Gymkhana Club Lease.

The committee, chaired by Sami Ullah Khan (MPA PP-145), was tasked with addressing concerns about the apparent discrepancies in the lease and management of the state’s property. It was revealed during the session that, according to sources, no audit has ever been conducted of Gymkhana Club’s properties or its various structures.

The Club has reportedly refused to respond to inquiries from the Public Accounts Committee, which raises further questions about its accountability and transparency. The committee has instructed government departments to provide detailed responses to these concerns at the next hearing.

It was stressed that determining the accurate market value of the property is crucial in order to reassess the rent that should be paid to the state. The Law Department has been requested to review all lease agreements and related documents thoroughly to explore the potential for recovering lost revenue and holding the responsible parties accountable for financial discrepancies. Representatives from the Gymkhana administration are also expected to be invited to the subsequent sessions of the Committee.