The Lahore High Court on Monday issued a stay order against the proposed auction of several commercial shops in Jaranwala, following a writ petition filed by 40 long-time tenants opposing the move.
Justice Malik Javaid Iqbal Wains heard the case and restrained authorities from proceeding with the auction, which was scheduled for July 25, 2025.
Filed through Advocate Chaudhry Shoaib Saleem, the petition stated that many of the petitioners had been operating businesses at the same locations since shortly after the creation of Pakistan. Some shops were constructed by the tenants under a public-private initiative in 2005, while others were developed by the municipal administration and leased through oral and later written agreements.
The petitioners argued that they signed formal tenancy agreements in December 2023 under Punjab Local Government policies and a 2019 notification issued by the Secretary of Colonies. They said they have consistently paid rent — with a 10% annual increase — and none are in arrears.
Despite this, the Deputy Commissioner of Faisalabad issued a public auction notice that included the already-leased shops. The petitioners contended that this action violates Section 94(7) of the Punjab Local Government Act, 2022, and infringes on their constitutional rights under Articles 4, 10-A, 14, and 18.
They also noted that each tenant had deposited substantial security amounts — around Rs 500,000 per shop — which remain with the government.
The court, after hearing preliminary arguments, stayed the auction and adjourned the matter for further proceedings. The petitioners have requested the court to declare the auction notice unlawful and to prevent any coercive actions against them.
Respondents in the case include the Punjab Chief Secretary, Secretary of Local Government, Secretary of the Colonies Department, Deputy Commissioner Faisalabad, and Assistant Commissioner Jaranwala.