The Royal Palm Golf and Country Club (RPGCC) is a prime property in the heart of Lahore, offering various high-end facilities to its members. Originally the property of Pakistan Railways, this 141-acre facility was being managed by its lessee Mainland Hasnain Private Limited (MHPL). As a result of the recent Supreme Court of Pakistan decision to cancel the lease, its control has been returned to Pakistan Railways, which has been directed to lease it out within three months through international tendering. If it fails to do so within the given time, it has to go to the apex court and seek an extension.

Pakistan Railways has taken over the administrative and functional control of the club according to the instructions of the court. Auditors are looking at the financials to work out receivables and liabilities of the contracting parties and point out anomalies, if any.

While there is a guideline about the implementation of the decision, stakeholders are worried about their status in days to come. Some members of the club fear losing their membership. There are also concerns about the deterioration of services offered by the club in case the leasing process takes long.

How real are the members’ concerns? Members of the club, who do not want to be quoted, have held a couple of meetings recently and discussed ways to protect their interests. A member who works with a multinational company says visiting the club has become an integral part of his life. He says members fear termination of their memberships because the club is deep into debt and new management might want to raise funds by selling new memberships.

Another member says the club gave them the opportunity to play golf. Earlier, he says, playing golf had been the privilege of armed forces’ personnel and bureaucrats. "All the members are treated equally here," he says. This, he says, is in total contrast to what happens at other golf clubs in the city.

Another member is thinking of selling off his membership but has, so far, failed to find a buyer. He says the club faces default on payments by many clients, including some who booked halls and lawns for weddings and other functions. He says the deterioration started with the filing of the case as the management thought it would have to ultimately forgo the lease.

The members say the apex court should pass an elaborate order regarding of their memberships the way it has passed instructions on other matters in the judgement.

The Supreme Court judgement says that during the interim phase "the normal activities of the club and its operations shall not be impeded in any manner whatsoever including, but not limited to, its dining areas, golf course, gymnasium, sports activities, swimming pools, cinema halls and wedding functions that have already been booked and are to be held therein, which shall be allowed to be held strictly as per the booking orders etc."

It adds that all assets, including receivables, all systems including software/security, etc of MHPL having any nexus with the Club/MHPL shall be taken over and vested in PR. All employees of the Club/MHPL shall continue to work for the Club subject to any orders that may be passed by PR. However, the question about members’ hip is yet to be addressed in a similar manner.

Ishaq Khan Khakwani, a former minister, the main petitioner in the case against RPGCC and a prominent PTI office bearer, says memberships cannot be sustained as the deal has been declared void ab initio. So, he says, actions taken under the deal do not hold ground. This includes the award of these memberships as well.

"The RPGCC deal was dubious from day one. This was obvious from the fact that the lessees went to Malaysia months before the bidding and invited Maxcorp to join them as consultants. But on return they portrayed Maxcorp to be their partners just to win the lease." This, he says, was done just to fulfill the requirement of the applicant having sufficient experience of executing similar projects.

Soon after the award of lease, Maxcorp left the partnership. One reason for this estrangement was that MHPL had blocked its payment worth Rs8.5 million. Maxcorp became an adversary of its former partner and informed the court about what had been going on between them and how the MHPL had cheated them.

However, Quratul Ain, a spokesperson for Pakistan Railways, said the assurance on memberships had come directly from the minister. "The apprehensions about Pakistan Railways not being capable of running the affairs of the club are irrelevant because it will not be performing this function. They will try to lease out the club as per the directions of the apex court," she adds.

The spokesperson did not agree with the assertion that the economic condition of the country was not conducive for foreign investment. "Investors from countries like Qatar, Turkey, etc, have shown interest in bidding for the club’s lease. Till the new bidding and handing over of the club to the new lessee, the admission of non-members to the club has been prohibited."

Advocate Feisal H Naqvi, who appeared in the court on behalf of the members, told TNS they were planning to again approach the court to get clear instructions regarding their rights. "The court’s judgment is comprehensive but the members feel there shall be a part on how the new lessee should deal with them. Therefore, they are thinking about a petition in the same court."

Naqvi said members had spent a significant amount of money on buying their memberships -- a part of which had gone to Pakistan Railways. Therefore, he said, they had a stake in the fate of the club. "Members are worried that their memberships might be cancelled once the new lease holder takes over its control." However, he also said, it will not be easy to cancel 3500 memberships and then expect to sell the same because the target market will be the same people. "Where will they find new members, is the question."