Fact-check: True, Lahore Gymkhana pays just Rs417 monthly rent for state land
An area measuring 1,133 kanals, one marla, and 80 square feet has been leased out at an annual rent of Rs5,000 until 2050
Updated Wednesday May 22 2024
During a recent session in the Punjab Assembly, a lawmaker 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.
The claim holds true.
Claim
On May 15, a member of the provincial assembly (MPA) from the ruling Pakistan Muslim League-Nawaz (PML-N) stated in the Punjab Assembly that Lahore Gymkhana Club, situated on prime public land on Upper Mall in Lahore, pays only Rs417 per month to the state for the lease.
Following an adjournment motion, the assembly speaker directed the finance minister to verify the accuracy of this claim.
Fact
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, a copy of which is available with Geo Fact Check. The agreement also stipulates that the lessee is responsible for paying all applicable taxes for the land.
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.
This fact was corroborated by a notice from the office of the additional deputy commissioner to the Club on August 26, 2020, regarding non-payment of rent after the year 2011, which reiterated the lease terms for an area measuring 1,133 kanals, one marla, and 80 square feet, at an annual rent of Rs5,000 until 2050.
Additionally, a senior official of revenue, who was privy to the information, confirmed to Geo Fact Check the authenticity of the lease deed as well as that it was still in “effect” today.
The minister for finance in Punjab did not reply to Geo Fact Check’s repeated requests for comments.
When Geo Fact Check reached out to the administration of Lahore Gymkhana, it was directed to the accounts department of the Club, where it was told that it was “confidential information” but it could be provided later.
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