Punjab Infotech to refund Rs 4.1 crore to bidder
Acting on the directions of the Punjab and Haryana high court, Punjab Infotech, the nodal agency of the Punjab government for promotion of IT industry, will refund Rs 4.15 crore to SAS Nagar resident Nirankar Singh, who had bid Rs 62 crore for a 1.52 -acre commercial site in Sector 67 in July 2011.chandigarh Updated: Mar 03, 2014 10:12 IST
Acting on the directions of the Punjab and Haryana high court, Punjab Infotech, the nodal agency of the Punjab government for promotion of IT industry, will refund Rs 4.15 crore to SAS Nagar resident Nirankar Singh, who had bid Rs 62 crore for a 1.52 -acre commercial site in Sector 67 in July 2011, but had refused to buy the property. Later, the corporation had declared the auction null and void, citing procedural irregularities.
The board of directors of Punjab Infotech took the decision in a meeting on Friday. Chairman Manjit Singh Rai said, "We will refund the money. I have also written to Punjab principal secretary to take disciplinary action against officers responsible for the lapses during the auction, as this is a huge loss for the corporation."
Officers that are liable to face action are RK Sangwan, senior executive director (technical ), RK Nangia , senior executive director (finance), and BK Sharma, manager
An inquiry conducted by the then principal secretary, industries and commerce, Punjab, SS Channy, into the alleged lapses during auction had also indicted senior officers of the corporation.
On July 29, 2011, Punjab Infotech auctioned 1.52-acre commercial site in Sector 67 with a reserve price of Rs 32 crore. Nirankar Singh of SAS Nagar bought the site for Rs 62 crore defeating 13 bidders. He deposited Rs 5 lakh as participation fee and Rs 4.15 crore as earnest money.
Singh was asked to pay 10% of initial amount, which came out to be Rs 6.2 crore, but he was allowed to deposit Rs 4.15 crore.
The corporation gave him two days to deposit the remaining amount. However, norms mandated that per norms the committee was supposed to take the initial amount of Rs 6.2 crore immediately after the fall of the hammer.
The corporation later issued an issued a show-cause notice to Singh, directing him to deposit the remaining amount, which he refused to pay. Singh's reply to the show-case notice said that as there was no development in the area, he was not interested in buying the site and demanded refund of the partly-paid initial amount.
Singh filed a writ petition in Punjab and Haryana high court demanding the refund and the court directed the corporation to refund his money after deducting Rs 10 lakh.
However, the corporation appealed before the double bench of the high court, which recently dismissed the appeal and directed the corporation to refund the amount to Nirankar Singh.