LIT gives ‘undue benefit’ to allottees, suffers loss

Kuldip Bhatia

Ludhiana, September 4

Accusing fingers are being pointed towards the Ludhiana Improvement Trust (LIT) for giving ‘undue benefit’ to certain allottees of residential plots in the D Block of the Shaheed Bhagat Singh Nagar colony on Pakhowal Road here which could cause a financial loss of over Rs5 crore. A section of the allottees have urged the state government (read Local Government Department, Punjab) to amend the notification and grant benefit of rescheduled payment only to deserving allottees.

Land acquired for ‘defunct’ City Centre project

• The matter pertains to allotment of residential plots to 114 applicants who were to be given alternate plots after the land in question was acquired for the ‘now defunct’ City Centre project. An area of 5.5 acres of the chunk of land where alternate plots were allotted to these persons was under encroachment and the LIT was not in a position to give physical possession of the plots to the allottees, nor could any development work be undertaken in this pocket. On persistent pleas made by aggrieved allottees, the government provided relief by way of waiver of non-construction fine (NCF), penal interest and rescheduling payment of instalments towards cost of the plot.

The matter pertains to allotment of residential plots to 114 applicants who were to be given alternate plots after the land in question was acquired for the ‘now defunct’ City Centre project. An area of 5.5 acres of the chunk of land where alternate plots were allotted to these persons was under encroachment and the Trust was not in a position to give physical possession of the plots to the allottees, nor could any development work be undertaken in this pocket. On persistent pleas made by aggrieved allottees, the government provided relief by way of waiver of non-construction fine (NCF), penal interest and rescheduling payment of instalments towards cost of the plot.

Around 50 allottees, who were given possession after the LIT secured possession of encroached land sometimes last year, have now raised objection that other allottees, who were given possession of their respective plots much earlier, should not be given the benefit of rescheduled payment.

In a complaint to the government, they have alleged that the allottees who had been given possession of residential plots much earlier stood to derive financial benefit of nearly Rs9 lakh each under rescheduled repayment and waiver of the NCF, etc. As a result, the Trust would suffer a financial loss of over Rs5 crore. They have demanded that the two groups of allottees — those who were given possession of plots much earlier and others who took possession of plots last year — ought to be treated separately and undue financial benefit should not be given to those 64 allottees who had taken possession of plots after the allotment.

LIT Chairman Raman Balasubramanium, however, rubbished the allegations, saying whatever relief had been given to allottees of residential plots was strictly in accordance with the directions of the government and as per the notification issued by the Local Government, Punjab. He said certain allottees were making attempts to blow the matter out of proportion for their vested interests.