The official process to rent out a small shop in Sheikhupura took four hours and it was finally given away for a monthly rent of Rs1.25 billion, unprecedented in Pakistan’s history so far.
At the bidding hosted by the District Municipal Corporation, bids to rent the shop started from Rs22,000 per month– the last rent of the shop. However, the competition between two rival traders, who kept offering higher and higher amount, took the monthly rent to Rs1.25 billion.
Ahmed Khursheed, who won the bidding, was angry at the administration for letting the process take an ugly turn. He said his father started a crockery business at the shop 60 years ago. “Now I am running the shop,” he said. “Obviously, the bidding amount can’t be paid. The administration has to review it. The other group maliciously let the bidding continue while quoting a fake amount,” he said.
The bidders had to submit Rs50,000 each to participate in the auction. This means that if the successful bidder surrenders the advance amount, he would lose just Rs50,000.
According to an assessment, the shop’s worth is not more than Rs10 million. The government rate for a 10-marla shop is Rs4.5 million. The shop that came under the hammer was not more than five marla in area.
