Allegations of Bir Davinder Singh totally unfounded

Allegations of Bir Davinder Singh totally unfounded

No undue advantage extended to private party

Harshabab Sidhu
Nabaz-e-Punjab, Mohali, December 25:
Rubbishing the allegations made by Bir Davinder Singh for extending undue benefit to a private party, the Punjab Government on Thursday clarified that these allegations are totally unfounded since the process of disposal of property is being carried out in a transparent manner by ARCIL under SARFAESI Act, 2002.
According to an official spokesperson the Industry Department, the disposal of the said property had been made by ARCIL under the appropriate provisions of SARFEASI Act through open e-bidding in a fair and transparent manner and dues of PSIEC had also been protected thereby no undue favor were granted to M/s GRG Developers & Promoters LLP i.e. auction purchaser. It is also worth mentioning that The ARCIL had conducted an open auction three times and got success the fourth time with proper price discovery.
The Spokesperson further pointed out that the physical possession of the property still lies with ARCIL and PSIEC shall transfer the title of the property in favor of the auction purchaser only after prior receipt of its full dues covering 50% unearned increase, enhanced land cost, and applicable transfer fee as per the procedure. He said that the Board of Directors of PSIEC in its meeting held on October 21, 2020, and the Department of Industries & Commerce of Punjab Government had approved the proposal on merits in accordance with the terms and conditions of the contract executed between Punjab Infotech/ PSIEC and JCT Electronics. The Financial interest of the State/PSIEC/ Infotech has been duly protected as the auction purchaser has been bound to make payment as per stipulated schedule, he added.
Pertinently, Plot No. A-32, Phase VIII, SAS Nagar (Mohali) measuring 31 acres allotted to M/s JCT Electronics on 99 years leasehold basis by Punjab Infotech on September 14, 1984, and the lease deed was executed between Punjab Infotech and M/s JCT Electronics on July 16, 1987, which contained the provision that in the event of transfer/ sale of plot, 50% unearned increase in the value of the property shall be paid by the purchaser to lessor i.e. Punjab Infotech. M/s JCT Electronics Ltd. failed to fulfill its financial obligations to the bankers/ financial institutions and the case was referred to the Board for Industrial and Financial Reconstruction (BIFR). Punjab and Haryana High court ordered the company to be wound up. Official Liquidator was appointed by the Hon’ble High Court to take over the assets of the Company. Punjab Infotech had filed its claim before the official liquidator regarding pending dues of enhancement in land compensation amounting to Rs. 275.06 Lacs and 50% unearned increase amounting to Rs. 123 Crore vide its letter dated October 15, 2019, based on the Current Reserve price of Punjab Infotech plots. Under the SARFAESI Act, 2002, Assets Reconstruction Company of India Ltd. (ARCIL), being the Secured creditor had taken the physical possession of the subject plot and made attempts to auction the same on various occasions. A public auction was conducted 4 times in the past at the reserve price (Based on the valuation assessed by the ARCIL and as agreed in the joint meeting of lenders) @ Rs. 105 Crore, Rs. 95.50 crore and Rs. 90.50 crore (twice) from December 2018. These auctions failed as there were no serious bidders.
Notably, Open E-Auction was again conducted by ARCIL during February 2020 at the reserve price of Rs. 90.50 crore. During e-auction, the same was sold at the highest bid amount of Rs. 90.56 crore to M/s GRG Developers & Promoters LLP. The PSIEC had filed its claim with ARCIL on 26.03.2020 on account of 50% unearned increase @ Rs. 45,28,03,500/- plus the enhanced land cost of Rs. 854.93 lacs in accordance with the terms and conditions of the lease deed which is a binding enforceable contract. M/s GRG Developers & Promoters LLP have already paid 50% sale value of the plot with ARCIL and have entered into an agreement with PSIEC for making payment of 50% unearned increase of Rs. 45,28,03,500/- plus enhanced land cost and applicable transfer fee as per guidelines within a stipulated time period with applicable interest on the unearned increase and enhanced land cost.