Pakistan Property News: Punjab notifies amended rules on land lease
LAHORE, The Punjab government has issued amended rules regarding the lease of state land for petrol pumps, CNG stations and service stations. According to the amended rules, land for petrol pumps, CNG stations and service stations will be given on a 30-year lease while the successful bidder will not be allowed to cut trees or unnecessarily remove sand or mud from the land.
Land will be given on a lease through an auction and the amount of initial bid will be decided by the committee headed by the district coordination officer (DCO) according to the market rate, says a handout.
The Local Government Department issued a notification regarding amendments in 30 sections and a number of sub-clauses in the Punjab Local Government Property Rules, 2003, and sent its copies to the departments as well as all commissioners, DCOs and TMOs for implementation.
According to the amended Punjab Local Government Property Rules, land having mineral resources, river banks, watercourses and drains cannot be leased. Only two to eight kanals and one to two kanals state land could be leased in rural and urban areas.
Those taking part in auctions will have to deposit the one fourth of the estimated rent as token money in the Local Government Funds in advance. According to new rules, the initial period of a lease will not be more than 15 years whereas, a one-time extension for not more then 10 years would be given. After the expiry of lease priority will be given to the occupant party in the next auction and in case of non acceptance of an auction bid, the lease will be given to other party and the occupant party will be bound to remove material within 30 days from the lease land.
According to amended rules, lease land will be transferred to the legal heirs after the death of the occupant. A successful bidder will have to deposit the rent of lease land in advance in the beginning of the year. Lease will be cancelled automatically if the bidder could not deposit the rent within 90 days and in such case new auction will be held. No district government will be allowed to give provincial government`s land on lease for CNG pumps, petrol pumps and service stations.