Royal Palm Qabza- State style

Property rights are at the heart of the modern market system—and Pakistan is a market based country. The entire economic edifice rests on security of property rights and the ability to transact them securely. Following the masters—Smith, Locke etc—I have argued many times that after security of life and liberty, perhaps the most important function of the state is the management of property rights and sanctity of transaction in these rights.

When ParkView Housing Authority cancelled plots, I had argued strongly against it. Defaults on development charges certainly should have led to foreclosure but remember “foreclosure” is the name of “due process”. A most important function of the state in its management of property rights and contracts is due process. Park View Board acquired the right to do take over property without “foreclosure.”No court blessed it. Governments and courts slept through that episode for 20 years.

They built a wall on my property in GOR Lahore and closed off our access to several streets because bureaucrats wanted a gated community.  Who does not want a gated community in a city center?

Again my questions are simple. 1.  What was the due process that led to the decision? 2. Why were we the affected not involved? 3.  What were the criteria used to take the decisions? 4. What criteria will be used to give our access back and remove the wall from my property?  5. Is there a law under which this can be done? Once again the state refuses to answer my questions.

What surprised me was the reaction of leading lawyers (who I cannot name) to my questions. To them due process is not required nor is there any reason to justify the actions of either state or seths. To them rights are state charity not innate in citizens regardless of wealth.

Unless our civil society especially our leading lights stand up for rights of all kinds including property, we will never develop an enlightened state.

Due process is required to ensure rights. Yet we don’t understand due process. Perhaps a vestige of our still lingering feudal culture. Kudos to Irfan Husain for pointing that out as I write this.

Enthused by a column in a local newspaper, I got into twitter and whatsapp discussions to find out yet again that due process is not a Paksitani thing. Everyone had an assumption. “Royal Palm was stolen from the government.” “It makes money.” “it is for the elites.”

I have no way of knowing how the Royal Palm deal was done and neither can I investigate it. But that is a matter for courts and investigating agencies. With a court decision against Royal Palm, bailiff of the court may arrange repossession and press charges.  This is “due process” on which civilization rests. Europe fought for it for centuries. US adopted it in the 5th amendment. Perhaps this is one fundamental reason why they are have led the world for 2 centuries.

Without a court order Railway Minister, the Prime Minister or the President or anyone has no right to enter a property leave alone forcibly seize it.

Surprisingly in this case, it seems that the Railways unilaterally took over the property in a cowboy like operation. And I hear the court said we will maintain this illegal position and have a hearing on it. I though the principle should be the illegal possession has to be reversed immediately. And then let the case go on.

Yes please investigate the deal and tell us if anything underhanded happened. If it did, throw the book at them.

Personally I have no stake in Royal Palm. Not even a member. Too expensive for me.

Even though Royal Palm is an expensive club catering to the elite. I find it is more aware of culture and learning than our other elite clubs that have been given free land and state subsidies. Royal Palm has done a lot to promote music. At such events they have even opened their doors to the public.

Unlike our other elite clubs, I have been to book launchings, seminars, conferences and learning events at the Royal Palm. They have actually subsidized some of these. When I mentioned that they should invite leading thinkers of Pakistan for a public lecture series, their management without hesitation said that they would pick up the costs.

Royal Palm more or less revived cinema in Lahore.  And all are free to come and see a good movie there.

In short there are welcoming and willing to promote thought ant culture in Lahore. And I think we should welcome that. Sadly, no one else is doing that even though they enjoy government subsidies.

So unless the original sin of bribing their way into the property has been committed, we should welcome the Royal Palm as a valuable addition to Lahore and defend it.

Some people however, seem to think that the original contract may not have been signed at the valuation that today’s activity shows. When making that determination, investigation must look at the investment that has been made as well as the product that has been developed. There is a huge distance and much investment and innovation between the dilapidated Railway Golf Club and the Royal Palm. The value then and now is miles apart. The contract has to be seen in the light of the circumstances of when it was written.

I have no idea how much Railway is earning of this deal but I do think it is substantial. If there is no original sin, Royal Palm is a legitimate business and must stay. It is in the interests of both parties to renegotiate and mutually beneficial deals. That is how the market system works.

This state sponsored qabza will hurt us in international markets. Think about what investors will read in this event? CPEC investors will wonder if with change in government, gun toting ministers will lead gunmen into their projects? Does this show us as a civilized state standing up to contracts that we sign?

This does not mean that malfeasance should be rewarded. Catch it with due process.

In our discussion, one leading lawyer said that because of our poor justice system, lawyers sometimes advise clients to take the law into their own hands. That is the best way to kill sate and society as it puts violence into the hands of all. And we all know the Weberian dictum that modern state requires violence to be monopolized by state.

All this happens because of an outmoded legal and justice system. It is time to prioritize and fast track legal, justice and court system reform. Cases festering in court for decades are eroding our society.

But no matter what no one including ministers should be able to take over property without due process.