LAHORE: The Pakistan Railways (PR) on Friday took control of Royal Palm Golf and Country Club from a private company that had been running it for around 15 years.
PR Minister Kh Saad Rafique said in a press conference that the Railways sealed the club and cancelled the deal on “violation of the agreement” by the company.
The club was established in Lahore in 2001 (Pervaiz Musharraf’s tenure) on 103 acres land of the Railways leased allegedly to Maxcorp Husnain Limited at a throwaway price.
The PML-N, when was in opposition in the PPP tenure, had termed the deal shady and announced to take back the club under Railways control after coming into power. According to some estimates, the land deal when signed had caused Rs10 billion loss to the national exchequer. A case against the agreement is pending in the Supreme Court while the NAB is separately investigating the deal.
In the wee hours of Friday a heavy contingent of Railways Police raided the club. The police forced all staff of the private company to leave the premises of club and sealed it. The Railways cancelled all present activities of the club and announced to resume them after Eid. The Railway Estate Development and Marketing Company (Private) Limited (REDAMCO) took control of the club till further decision. The PR in a statement asked the people who had booked events at the venue to contact REDAMCO and said the decision about the members of the club would be made soon as per the law.
Railways Minister Kh Saad announced cancellation of Royal Palm agreement between the private firm and Railways during media talk at PR headquarters. He also announced to hold fresh bidding under PPRA rules to handover club to interested parties. On a query that since the matter was in the court how could the raid be justified the minister said the contract with the club was terminated through legal ways and the action was taken against illegal possession.
“Yes, the case is in the Supreme Court (SC) but the apex count did not restrain the Railways from taking action against the defaulter.
“The club management has not paid rent to the railways for the last two years. It did not pay gross revenue share for three years. So we were left with no option but to seal it,” he said.
The minister said that 103 acres of Royal Palm Club was leased in 2001 for 33 years with malafide intensions but in violation of the agreement, 33 bungalows and 108 quarters of railways were demolished to increase the land area from 103 acres to some 140 acres.
He said that according to the agreement, the land-use charges were set at Rs 21.6 million annually, which was changed to Rs 2,160,000 in violation of the agreement.
“A five-star hotel was to be constructed in the club, which was not built. Cinemas and marquees were built without permission. The management was to give 10 per cent to the railways but it did not pay.”
To a question, the minister said that Royal Palm case was under investigation in NAB and the railways was hopeful that its money would be recovered. He said that NAB Islamabad-Pindi Chapter was dealing with the club case.
Earlier, when the Railways Police raided the club, the employees of the private firm recorded their protest and blocked the main Canal Road for traffic causing long queues of vehicles. Later, they called off the protest after they were informed that the Punjab Chief Minister had formed a committee to probe into the issue.