GLADA liquidates ₹150 crore to help Punjab govt tide over fund crunch

According to the official, the move comes after a state government order and the funds will be transferred to the finance department as a six-month loan

The Greater Ludhiana Area Development Authority (GLADA) has liquidated fixed deposits (FDs) worth ₹150 crore for transferring funds to help the state government tide over fund crunch, an official aware of the developments said.

A GLADA official said no official letter issued by state, funds to be returned in six months with 8% interest. (HT File)

According to the official, the move comes after a state government order and the funds will be transferred to the finance department as a six-month loan.

Requesting anonymity, a GLADA official said the department chief got a call from the senior officials of the state government and the department has started the process of transferring the payments as the FDs were liquidated on Thursday.

However, the official clarified that no official letter regarding the order was sent to the officials.

The official said, “GLADA has a significant reserve in the form of fixed deposits across banks. The liquidation of these funds is a temporary measure to aid the state’s finances. The state department claimed that the money will be returned after six months, once the state’s financial condition improves. The state government highlighted that they are going to give interest of 8% against the amount.”

An official from the department highlighted that Jalandhar Development Authority (JDA) is going to pump ₹50 crore to the government and Greater Mohali Area Development Authority (GMADA) is also pushing ₹1,000 crore to help the state government.

GLADA chief administrator Sandeep Rishi, who was transferred on Thursday evening, declined to comment on the matter.