The Punjab National Bank (PNB) has granted the Jalandhar Improvement Trust a loan of Rs 35 crore to help it pay the bi-annual installment of Rs 25 crore on an earlier loan taken from the same bank.
Just after the loan was sanctioned, the Trust paid Rs 31 crore to PNB —Rs 25 crore as installment and the rest as interest — Trust chairman, Parneet Bhardwaj, told HT.
The cash-strapped Trust had taken a loan of Rs 175 crore from the PNB for its Surya Enclave Extension scheme, of which it owed the bank Rs 90 crore.
Sources said the Trust had earlier approached the PNB to extend the deadline for repayment of the installment, but that the latter denied, perhaps as the Surya Extension scheme was caught in a legal tangle.
Since the final date of paying the installment was December 30, for the past two months the Trust had been on its heels to arrange the money. The Trust was pinning its hopes on the auction of their commercial property at Partap Bagh, which is worth around Rs 20 crore.
The property, however, could not be auctioned as the Municipal Corporation has yet to respond to requests of getting the modern garbage dump removed. The garbage dump, the Trust argued, was putting off probable bidders.
Things, however, turned easy after the Punjab and Haryana high court on December 22 dismissed all the fifteen petitions pertaining to land acquisition in Surya Extension.
The land acquisition collector on December 29 gave possession of 295 kanals of land for the Surya Extension scheme to Jalandhar Improvement Trust (JIT) on the case.
A Trust official said after the high court verdict, the PNB approached them for providing the loan “as they saw that there will be no hurdle in implementing the scheme”.
The official said the PNB was now expecting that the Trust will be getting the installments from the plot holders in Surya Enclave.