Royal Palm Country Club sealed over ‘Rs 2.16b dues’

• Hundreds of employees, members of administration removed from premises; country club handed over to Railway Estate Development and Marketing Company
• Khawaja Saad Rafique says ministry sealed the club for non-payment of dues and because Railways agreement with Royal Palm has been terminated
• Says the club has neither paid rent nor Railways’ share of the revenue as per agreement
• Club’s general manager says ministry committed contempt of court as SC has given them stay order until June 28
• Owner Ramzan Sheikh’s wife says ‘Rafique’s goons have illegally taken over the club’

LAHORE

HASSAAN AHMED

The authorities of Pakistan Railways sealed the Royal Palm Golf and Country Club located at the Canal Road in the early hours of Friday morning, alleging that the club administration owes Rs 2.16 billion to Pakistan Railways, a claim denied by the club’s management.

A heavy contingent of Railways Police arrived just after Sehri and forced all the staff members to leave the premises of the club forthwith.

The employees of the club recorded a massive protest in the morning and also blocked the Canal Road demanding the unsealing of the premises. The protesters were chanting slogans against Federal Minister for Railways Khawaja Saad Rafique as they said that their club was sealed illegally by the Railways authorities.

There was a traffic gridlock on the Canal Road and the Capital City Police Officer (CCPO) Lahore Capt (r) Ameen Wains had to intervene to avoid any law and order incident. The protesters ended their demonstration and opened the road for traffic when the CCPO was successful in placating them. However, they erected a camp in front of their club and vowed to remain there until the unsealing.

“I have tried to calm down the protesters and will convey their grievances to the authorities concerned,” the CCPO said while talking to the media personnel in front of the club.

NON-PAYMENT OF DUES, THE REASON FOR SEALING THE CLUB:

According to the Railways authorities, the club failed to pay their dues despite being notified. Furthermore, the club administration violated the lease laws and did not get their audit done. A case against the club is also underway in the National Accountability Bureau (NAB) and other courts as well, they said.

Federal Minister for Railways Khawaja Saad Rafique told reporters in a press conference that 103 acres of the Royal Palm Country Club was leased in 2001 for 33 years with mala fide intensions. He said that 33 bungalows and 108 quarters of Railways were demolished to increase the land area from 103 acres to some 140 acres in violation of the agreement. The Royal Palm management was supposed to pay 10 per cent to the Railways out of its gross revenue, he added.

He said that cinemas and marquees were also built without permission. The club has not paid rent to the Railways for the last two years while the share of the gross revenue hasn’t been paid in three years.

TAKING ACTION AGAINST DEFAULTERS:

Saad claimed that the case of the club is in the Supreme Court (SC) but that does not restrain the Railways from taking action against the defaulter. He went on to say that the contract with the club had been terminated through legal ways and action had been taken against illegal possession.

The minister said that the activities of the club have been suspended but they will be resumed after Eid. He said that currently the Railway Estate Development and Marketing Company (Private) Limited (REDAMCO) is looking after the club’s affairs, and that further decision will be taken at a later stage.

He said that people who had booked events should contact REDAMCO. As far as members of the club are concerned, the Railways officials will see how they can be facilitated as per law. He said that all the healthy activities in the club will take place except the selling of alcohol.

To a question, the minister said that the Royal Palm case was under investigation in the NAB and the Railways is hopeful that its money will be recovered.

‘RAILWAYS AUTHORITIES HAVE COMMITTED CONTEMPT OF COURT’:

However, Royal Palm’s General Manager Umar Meer told Pakistan Today that the Railway’s authorities have committed contempt of court by sealing the club as the court has granted a stay order to the club until June 28.

He showed Pakistan Today a copy of the court’s order in which a stay order had been issued by Civil Judge Class I Naeem Ahmad until June 28.

“The Supreme Court must take suo motu action to protect our rights as the Railways Ministry crossed its bounds by sealing our club,” he said. He further added that a number of events were scheduled to be held in the club including a wedding ceremony, but they had to postpone all the functions.

“There is an even of Coca-Cola and the Western Union tomorrow (Saturday). We demand that our club be unsealed forthwith,” he added. He said that 3,000 families are associated with the club all of which have been deprived of using the facilities there.

Muhammad Naveed, an electrician told Pakistan Today that he was sleeping in his room when the police came and started shouting orders to leave the club premises.

“They manhandled us and also destroyed the precious items of the club,” Naveed said, who hails from Khanewal and lives in the club with 300 other employees of the club.

A heavy contingent of police has been deployed inside and outside the club while no one is being allowed to enter.

‘ILLEGAL TAKOVER’:

In a social media post, the wife of Ramzan Sheikh-the owner of the club, said that “Saad Rafique and his thugs have taken this too far as they have illegally taken over the Royal Palm, storming the place with his goons and Railways people”.

“This take over is a complete violation of court orders against the owners, depriving 1000 employees of attending work and 3000 honorable members of using the Club.” Uzma Ramzan said.