Punjab blocks auction of Railways lands in new row

[Lahore_Real_Estate]

slamabad told these lands belong to provinces

Tuesday, May 25, 2010
By Tariq Butt

ISLAMABAD: To quickly block the leasing/licensing of hundreds of kanals of prime urban and agricultural land valuing billions of rupees at throwaway rates, the Punjab government decisively moved on Monday and wrote a letter to federal authorities to immediately cancel the process of public auction.

“We have also officially notified for the information of the general public that people should not participate in the auction as the Punjab government would not transfer, register or approve building plan of such property,” a senior provincial administration official, closely working with Chief Minister Shahbaz Sharif, told ‘The News’.

“A summary has just been approved by the Punjab government, urging the federal authorities to annul the auction of leasing/licensing of the properties located in Lahore division of the Pakistan Railways,” he said and dubbed it as a ‘loot sale’, which must be scrapped otherwise the public exchequer would suffer an irreparable loss.

The official explained that the land being used by the railways all over Pakistan was owned by the provinces in their respective jurisdiction, which had been given to the federal entity for its use. But if such property is not utilised by the railways and is thus surplus, it cannot be sold, leased or licensed to private parties without the approval and consent of the provinces, he said. He said hectic deliberations were held over the past some time on this very issue and the provinces had proposed that if the railways wanted to sell or lease the surplus land, half of it should be given back to the provinces so that they could take benefit from it the way they like.

However, the official said, despite this the Pakistan Railways has sponsored an advertisement in newspapers offering to the general public leasing/licensing of the land. A total of 207 properties are being put under the hammer in the cities and districts of Lahore, Faisalabad, Gujranwala, Narowal, Hafizabad, Qila Sheikhupura, Okara and Tandlianwala. The advertisement appeared on May 8, 2010.

The land has been offered for the purposes of commercial, stacking, nursery, cultivation and agriculture. The leasing/licensing period varies from one to 10 years. Applicants are required to deposit earnest money of Rs5,000, Rs10,000, Rs25,000 or Rs30,000 depending on the nature of the property offered.

Just five properties measuring 160, 161, 162, 67 and 68 acres located in Kot Lakhpat Lahore offered for lease for commercial purposes are estimated to value billions of rupees. This is the most expensive land that has been offered.

Similarly, the worth of four properties measuring 1.6 acres, 1.12 acres, 1.26 acres and 3.22 acres in Gujranwala is also said to be in millions of rupees. A piece of agriculture land measuring 39.86 acres located in Qila Sheikhupura has been offered for lease for cultivation purpose.

According to the advertisement given in the name of Raja Irfan Ahmed for Divisional Superintendent, Pakistan Railways Lahore, the possession of the property will be given to the successful bidder after he will deposit half of the offered cost, meeting other conditions and signing of the agreement between the two sides. The auction committee will open the closed offers in the presence of the bidders.

A Pakistan Railways official said the surplus land was being leased/licensed to put it to some use by private parties in exchange for adequate money at a time when it was facing an unprecedented financial crunch. Because of the severe crisis, the railway has suspended its service on several routes. The Punjab government official said all the offered land that was situated close to the rail track was precious.