LAHORE: Pakistan Railways (PR) has decided to re-auction its properties in Lahore’s Badami Bagh, a move that has sparked controversy.

There are allegations that the process is being manipulated to favour certain ‘favourite’ bidders. The properties, mainly warehouses, were auctioned recently, but the process was cancelled after the original auction file mysteriously disappeared.

Sources allege that the cancellation of the auction was deliberate aimed at facilitating select bidders who were unable to secure properties in the initial auction. However, PR’s Divisional Superintendent (DS) Hanif Gull has dismissed these claims, saying that the re-auction is intended to ensure fairness and transparency.

According to Mr Gull, the previous auction had attracted political influence as recommendations came from the Prime Minister’s Office and High Court judges in favour of certain bidders.

“Due to this pressure, we decided to cancel the auction despite the fact that some bidders had secured properties at rates above the benchmark set by PR authorities,” he said.

An added complication in the entire process is the original auction file went missing. Mr Gull acknowledged this issue. He said, “With the file missing, the process became problematic, leaving us with no option but to cancel the auction and start again.”

When questioned about the misplacement, he said he had returned the file to the relevant officers, but it later disappeared. He could not provide a clear response on how or why a duplicate file was created.

A senior PR official said that the duplicate file contained discrepancies, prompting objections from the deputy DS. Despite this, the decision was made to cancel the entire auction and reinitiate the process. Documents seen by Dawn show that certain plots had been approved at Rs240 per square foot, while others below the benchmark were to be auctioned again. However, instead of following this procedure, all auctions were annulled.

Mr Gull said that those who had bid below the benchmark were likely behind the file’s disappearance. “Those who were willing to pay more had no reason to interfere. It is illogical,” he said. He added that the re-auction would ensure all bidders meet or exceed the benchmark.

He said that the Badami Bagh site has revenue potential, and the re-auction, scheduled for April, is expected to generate higher income for the national exchequer. “We aim to break the monopoly of manipulators and encourage new bidders,” he said. While denying allegations of corruption, Mr Gull reaffirmed PR’s commitment to transparency. The re-auction is set to take place immediately after Ramazan.

Published in Dawn, March 8th, 2025