Finance minister Harpal Singh Cheema on Friday said that the state government has begun auctioning properties of Value Added Tax (VAT) and Goods and Services Tax (GST) defaulters as part of a drive to recover long-pending tax dues, with the first round of auctions in Mohali and Jalandhar yielding significant recoveries.
Cheema said the excise and taxation department successfully conducted three property auctions against tax defaulters who failed to clear outstanding liabilities despite repeated notices and opportunities to settle their dues.
According to the minister, a property belonging to Sumit Engineering in Mohali was auctioned for ₹13.22 crore on June 19, while a property of MR Rice Mills in Shahkot, Jalandhar, fetched ₹1.11 crore. He said ₹3.58 crore has already been deposited into the government treasury by successful bidders, with the remaining amount expected to be deposited in accordance with prescribed procedures.
Cheema said the auctions were initiated after the defaulters did not avail themselves of the benefits offered under the state’s One-Time Settlement (OTS) Scheme, which was introduced to facilitate the settlement of pending VAT disputes.
At the same time, the government has extended the OTS scheme until July 31, 2026, providing taxpayers another opportunity to resolve outstanding liabilities and avoid coercive recovery measures.
{{/usCountry}}At the same time, the government has extended the OTS scheme until July 31, 2026, providing taxpayers another opportunity to resolve outstanding liabilities and avoid coercive recovery measures.
{{/usCountry}}Cheema said the department has identified additional properties belonging to defaulters, and nearly 20 more auctions are planned across various districts in the coming weeks.