Fortress Stadium: Shopping centre lease agreement challenged

Petitioner counsel says the land can only be used for defence and non-commercial purposes.

LAHORE:

The Lahore High Court on Tuesday issued a notice to federal and provincial governments and the Fortress Stadium Management on a petition challenging the construction of a five-storey shopping mall at the Fortress Stadium.

Justice Ayesha A Malik issued the order on citizen Nayyer Khan’s petition. He said the shopping complex, covering 60,942 square feet, was constructed in violation of the law. His counsel Saad Rasool submitted that the land belonged to the federal government but the Fortress Stadium management (FSM) under the orders of its secretary, a retired army officer, and its chairperson, a serving brigadier, had leased the land to DUPAK Developers Pakistan on October 27, 2007, for 33 years. He said the construction was now complete and they were handing over possession of shops at the complex.

Rasool said in the lease agreement the Pakistan Army had been declared the sole owner of the land, but in fact the land belonged to the federal government which had given it to the Ministry of Defence in occupancy. He said the 114 Brigade headquarters had been demolished to construct the plaza. He said according to a letter of the Military Estate Officer, the land was specified as Class-AI land and was reserved for specific military purposes. He said it could only be used for fortifications, barracks, stores, arsenal aerodromes, bungalows for military officers, parade grounds, military recreation ground, rifle ranges, grass farms, dairy farms, brick fields, soldiers and hospital gardens. He said the updated version of the policy on the land stated that “this particular piece of land can only be utilised by army for defence and non-commercial purposes.”

Rasool said the FSM was not a legal entity or a part of the government, and so could not lease land on behalf of the government. He said the FSM was known to work under the Soldiers’ Welfare Organisation Lahore (SWOL), which was meant to ensure the wellbeing of soldiers’ families. Leasing out land was not in its mandate, he said.

Rasool said no commercial construction was allowed in the cantonment unless the project plan had been duly approved by the cantonment board. He said no such plan was approved for the shopping complex in question.

The land had been leased out at Rs5,661 per square feet, spread out over 5 floors, said Rasool. Now the DUPAK Developers were offering it to clients at Rs50,000 per square feet. Rasool said according to the agreement, DUPAK had to pay Rs20 million upfront and the remaining construction would be covered from payments made by the clients.

Published in The Express Tribune, February 26^th, 2014.