Amid allegations that the Ludhiana Improvement Trust (LIT) had auctioned off prime commercial land in the Model Town Extension at “throwaway prices,” the local bodies department scrapped the questionable deal on Friday.
The trust had auctioned off 3.79 acres (16,344 square yards) of prime land for around ₹98.38 crore, the Bharatiya Janata Party and Shiromani Akali Dal (SAD) have said, alleging that the land is worth approximately ₹350 crore.
Local bodies minister Brahm Mohindra said the auction had been cancelled because there had been a discrepancy in the statements issued by LIT chairman Raman Balasubramaniam and deputy commissioner (DC) Varinder Sharma pertaining to the reserve price of the auctioned land. “The auction has not been cancelled due to allegations of a scam,” the minister clarified.
The auction was nullified hours after Cabinet minister Bharat Bhushan Ashu also recommended that the auction proceedings be cancelled. However, the development is being viewed as a setback for the Congress-ruled state government as the auction was cancelled after the Opposition demanded a probe from the Central Bureau of Investigation (CBI), and Enforcement Directorate (ED) among other departments, alleging that a multi-crore scam had been committed.
The Opposition says that the land was auctioned to close aides of the Cabinet minister way below the market price. Meanwhile, the LIT chairman had come under fire after deputy commissioner (DC) Varinder Sharma denied fixing the reserve price at ₹91.86 crore , while the chairman claimed that the rate had been fixed by a panel led by Sharma.
{{/usCountry}}The Opposition says that the land was auctioned to close aides of the Cabinet minister way below the market price. Meanwhile, the LIT chairman had come under fire after deputy commissioner (DC) Varinder Sharma denied fixing the reserve price at ₹91.86 crore , while the chairman claimed that the rate had been fixed by a panel led by Sharma.
{{/usCountry}}Breaking his silence on the growing controversy on Friday, Ashu had said that the Opposition’s allegations were “baseless, frivolous and motivated.”
“I request the Punjab government to cancel the e-auction of the said land and issue fresh dates, so that any person willing to offer a better price is able to participate,” he tweeted. However, he could not be reached for a comment after the auction was cancelled.
The LIT chairman maintained that everything had been done fairly and transparently. “The opposition has no proof to substantiate these allegations. They are levelling these allegations to gain political mileage and malign our image.”
Mohindra said, “The auction has been cancelled to clear the facts and not due to the allegations of a scam. The matter will be thoroughly probed. A report has been sought from the deputy commissioner.”