Law: Colonization of Government Lands (Punjab) Act, 1912

Section: 10(2)

Law: Constitution of Pakistan 1973

Section: 199, 25

Tagline

Disposal of Public Assets and Vested Rights: A pending application to purchase leased state land under an old policy does not create a vested right or legitimate expectation when the policy itself preserves absolute government discretion, and the state's subsequent policy shift to dispose of public assets through transparent open public auctions rather than private treaties is legally sound, in the public interest, and non-discriminatory.

Summary

The petitioner, a businessman, was granted a lease of 6 kanals of state land in Bahawalpur for the installation of a petrol pump. Under a 2003 Punjab Government policy (issued under the Colonization of Government Lands (Punjab) Act, 1912), lessees were permitted to apply to purchase the state land under their lease. The petitioner applied, and his application was processed through various levels of the revenue hierarchy, with prices being assessed over the years (escalating from Rs. 12,000 to Rs. 38,000 per marla).

However, before his eligibility was formally declared by the District Collector or the final price and sale were approved by the competent authority, the Government of Punjab introduced a new policy in 2010. This subsequent policy mandated that fresh leases be granted through open public auction and explicitly declared that all pending purchase applications under the 2003 scheme stood abated.