PPDA protests auctioning of petrol pumps leased out by LDA

[Lahore_Real_Estate]

LAHORE (December 23, 2010) : Pakistan Petroleum Dealers Association (PPDA) held a protest rally at Charing Cross on Mall road before the Provincial Assembly against auctioning of 18 LDA sites leased out to petrol companies in the provincial capital on 28th December. PPDA demanded of the Punjab government to implement the agreement reached between the district government and petroleum and CNG dealers associations, on 12th December under which it was agreed that LDA would not disturb the present arrangements.

Dealers will continue to run the LDA occupied petrol pumps. PPDA's proposal would be submitted to the Punjab Chief Minister and a decision in this regard would be taken by consensus, it added. Khwaja Atif Ahmed, PPDA secretary information told Business Recorder that the LDA was auctioning 18 running petrol pumps constructed on leased land in the city before expiry of the 33 year lease period.

He quoted section 4-e (ii) of "The Disposal of Land by Development Authorities (Regulation) Act 1998." Which says, "sites for petrol pumps or CNG stations shall be leased for a period of eighteen years through open auction; provided that 1) the period of an existing lease may be extended, from time to time, for three years with ten percent per annum increase in the rate of rent, 2) the total lease period including extension shall not exceed thirty three years and 3) on completion of thirty three years, the site may again be leased through open auction and the existing lessee may match the bid."

Khwaja Atif said Petroleum Dealers are ready to purchase the LDA leased out premises at the current market rates, or if LDA wanted to increase the rent of its lands, the dealers will pay the increased amount of the rent.