Government Clarifies Psiec Had No Role To Play In The Auction Of Industrial Land Of 31 Acres Located In Mohali

GOVERNMENT CLARIFIES PSIEC HAD NO ROLE TO PLAY IN THE AUCTION OF INDUSTRIAL LAND OF 31 ACRES LOCATED IN MOHALI

CHANDIGARH, AUGUST 10:  Reiterating that the auction of industrial land plot measuring 31 acres located in Phase VIII, Mohali had been auctioned by Assets Reconstruction Company of India Ltd (ARCIL), which is an agency duly registered with the Reserve Bank of India (RBI) under the provisions of SARFAESI Act, 2002, the Industries department spokesperson on Tuesday clarified that state government had no role to play in the process.

PSIEC had no role to play in the conduct of said auction, the spokesperson said adding ARCIL had taken over the possession of the property as per law after JCT Electronics, the allottee of the plot, had been liquidated as per order of Hon’ble Courts after defaulting in making repayment of loans extended by various financial institutions/ banks.

Responding to media reports published in a section of media today, the spokesperson further pointed out that subsequently in the online public auction conducted by ARCIL under the provisions of the SARFAESI Act in an open transparent manner, the plot was auctioned at the price of Rs. 90.56 crore in February 2020. Thereafter, PSIEC had submitted claim of unearned increase in pursuance of the provisions of the lease deed executed with JCT Electronics amounting to Rs. 45.28 crores i.e. 50% of the sale value. PSIEC had obtained advice of Senior Advocate in this matter before submitting the claim with ARCIL.

A tripartite agreement was executed between PSIEC, ARCIL and M/s GRG Developers& Promoters LLP, in order to safeguard the financial interests of the Government/ PSIEC, which had bound the auction purchaser to clear the dues of PSIEC in a timely manner.

It was further clarified that PSIEC has not even issued NOC for effecting transfer of property in favor of auction purchaser. In fact to protect its interests, PSIEC had categorically conveyed to ARCIL and auction purchaser that NOC for transfer will be provided only after the matter is decided by the Finance Department, Govt. of Punjab. Neither PSIEC has issued NOC for transfer nor possession of the property has been given to the auction purchaser.

Now the said advice of Finance Department, Govt. of Punjab has been received in this matter. In compliance, Government at the level of Industries & Commerce Minister, Punjab has ordered the termination of the above mentioned Tripartite Agreement. It was further informed that the matter is sub-judice and is listed for hearing in the Hon’ble Punjab & Haryana High Court on 24.08.2021.

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