Liquidated firm’s land auction faces trouble

Chandigarh, January 20

The controversial auction of 31 acres of prime land of liquidated JCT Electronics could run into rough weather with Punjab Infotech staking claim of Rs 161 crore as the unearned profit from the sale of property.

The Punjab Small Industries and Export Corporation (PSIEC), the government undertaking that estate management on behalf of Punjab Infotech, has staked claim of Rs 45.28 crore as unearned profit as 50 per cent of the sale value by selling the property for Rs 90 crore. Sources said Punjab Infotech in the communication to PSIEC has clearly stated that going by current reserve price, the unearned profit should be Rs 161 crore and transfer of the land to the purchaser would be subject to its policy. The meeting of the Board of Directors of Punjab Infotech to approve or disapprove the sale is pending. It has postponed its meeting on the role of Punjab Small Industries and Export Corporation (PSIEC) Limited for not staking Rs 161-crore claim as the unearned profit to be paid on the sale of 31 acres of prime land of liquidated JCT Electronics in Mohali. It instead agreed to claim Rs 45.28 crore as 50 per cent of the sale value. The Finance Department has also raised an objection to the PSIEC’s decision. Officials point out that any decision of the PSIEC to stake the claim of unearned profit on the sale of plot has to be taken with the approval of the Board of Directors of Punjab Infotech, the land allotment government agency.

A government officer said, “Punjab Infotech had allotted land to JCT Electronics 26 years ago on leasehold basis for 99 years. As per the lease deed clause, 50 per cent of unearned increase was applicable at the time of the sale of the plot on the basis of prevailing reserve price. In this case, the prevailing reserve price in the area was Rs 21,500 per sq yard.” — TNS