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LIT trashes charges of auctioning prime land at throwaway prices
While the land near the Dugri Canal Bridge has been auctioned for around ₹98.38 crore (including 6% cess), it has been alleged that the market value of the land is around ₹350 crore and the LIT has fixed the reserve price at ₹91.86 crore to benefit the bidders
The Ludhiana Improvement Trust (LIT) has found itself embroiled in another controversy over the e-auction of around 16,344 square yards of prime land in the Model Town Extension on August 16, with detractors alleging that the land had been sold at very low rates.
While the land near the Dugri Canal Bridge has been auctioned for around ₹98.38 crore (including 6% cess), it has been alleged that the market value of the land is around ₹350 crore and the LIT, which being led by chairperson Raman Balasubramaniam, has fixed the reserve price at ₹91.86 crore, to benefit the bidders.
BJP leader Bikram Singh Sidhu has submitted a complaint with Union home minister Amit Shah and Punjab chief minister Captain Amarinder Singh, seeking a CBI inquiry into the alleged fraud and criminal cases against those involved. A copy has also been marked to the local bodies department director Punjab Pradesh Congress Committee chief Navjot Singh Sidhu.
Demanding cancellation of the auction proceedings, Bikram Singh alleged that the fraud had been committed on the behest of a Cabinet minister to benefit the bidders and the land mafia. “The market rate of the land in that area is at least ₹2 lakh per sq yard and a fraud of around ₹250 crore has been committed.”
Shiromani Akali Dal (SAD) district president Ranjit Singh Dhillon also accused the LIT chairperson of committing fraud by finalising the reserve price of prime land at a lesser rate in comparison to the market value. “The LIT should focus on providing facilities to the public rather than auctioning properties at lesser rates to benefit bidders. This auction should be cancelled by the local bodies department,” Dhillon said.
As per officers in the local bodies department, senior Congress leaders in the city have also brought the matter to the chief minister’s notice. One of the LIT officials, requesting anonymity, said senior officials of the local bodies department also took up the matter with the chairman.
Chairperson refutes allegations
Meanwhile, chairman Balasubramaniam refuted the allegations during a press conference organised at the LIT’s office on Tuesday saying that the action had been conducted in a transparent manner.
“Information regarding the e-auction was published in national newspapers three times before the property was put on auction. Anybody could submit a bid. Four bidders participated in the auction for this property and many other properties were also auctioned by the LIT. All the proceedings were recorded,” he said.
“The reserve price was fixed as per the norms and the bidders will be able to cover only 40% of the total space as per the norms and bylaws. However, property will be allotted subject to the approval of the local bodies department, which has been sought. Those claiming that ₹350 crore could be earned from the auction, should submit an offer with the LIT and we will cancel the e-auction and allot the property to their name,” the chairperson said, adding that the successful bidder had also submitted around ₹13 crore with the LIT.
