There were gross violations in agreement between the Royal Palm Golf and Country Club and Pakistan Railways for acquisition of land for the hotel, Pakistan Today has learnt.
According to railways authorities, an Expression of Interest (EOI) was floated by the Pakistan Railways in 2000 in a bid to construct a golf club on railways land. Some six companies took part, but only four qualified initially.
Among the successful qualifiers were also the joint venture of Husnain Construction and Uni Corn Consultancy Services Private Limited.
Nevertheless, Husnain Construction included another company named Max Corps in the venture illegally at a later stage instead of the original Uni Corn Consultancy Services. The officials concerned however did not take any action against this gross violation.
According to the conditions of tendering, 103 acres land was supposed to be given on lease for a period of 33 years.
A meeting of Railways board’s executive committee was held on 20, April 2001 in which certain conditions were approved in the tender. The company which would offer the highest bid had to pay the licensing fee of $ 2.5 million and the land usage charges were set at Rs 21.6 million per annum with 15 per cent increase after every three years.
The meetings of the executive committee were held on 13 July, 2001, July 21, 2001 and July 26, 2009 in which basic changes were made with the compliance of railways authorities to benefit the company.
According to the amended conditions, the land usage charges were dropped Rs 4 per yard to Rs 52.43. The railways authorities tempered with the record of land usage charges and brought the figure of Rs 21.6 million to Rs 2.16 million. Similarly, the lease period was increased to 49 years instead of 33 years and the area of land was also increased to 140 acres from 103 acres. Moreover, 33 bungalows of officers and 109 houses of workers were also demolished to increase the land, but the compensation amount has never been paid to the Pakistan Railways.
Furthermore, the scope of the project was also increased illegally to construct a five-star hotel with the adjacent land of the club in the phase 2. According to the agreement, the club authorities were supposed to pay $ 500,000 under the commitment fee and fixed guaranteed revenue was set at 40 million per annum with a 15 per cent increase each year.
When contacted, Royal Palm Golf and Country Club General Manager Omer Mir told Pakistan Today that the club was going to file a contempt petition in the court on Monday against the railways authorities. “The railways authorities have sealed the club illegally despite the stay order of the court as the court has given us a stay order till June 28,” he said.
Ask the then railway ministry's dealing officials, they would tell you that the initial deal was executed at the extreme pressure and intervention of the then President Musharraf who used to call the then Railways Minister personally to finalize the deal in favour of m/s Hasnain Constructions
Comments are closed.