Row over prime land’s sale in Ludhiana: Local bodies department directs LIT to refix reserve price
After cancelling the auction of the 3
After cancelling the auction of the 3.79 acres of prime land in Model Town Extension amid allegations of multi-crore land scam levelled by opposition parties, the local bodies department has directed the Ludhiana Improvement Trust (LIT) to get the reserve price of the said land refixed by the district level price and rate fixation committee.

The local bodies department on Saturday released an official order regarding the cancellation of the auction. It stated that LIT should first decide whether it wants to sell the chunk of land (vacant plot) or establish shop-cum-offices (SCOs) at the site and then auction those. The reserve price should then be decided by the price and rate fixation committee.
The LIT authorities have also been directed to refund around ₹14 crore, which was submitted by the highest bidder during the auction held on August 16, which was cancelled later.
Earlier on Friday, local bodies minister Brahm Mohindra stated that the auction was cancelled as there were discrepancies in the statements issued by LIT chairman Raman Balasubramaniam and deputy commissioner (DC) Varinder Sharma regarding the reserve price of the land. The decision has not been taken due to allegations of any scam but to clear the facts, he added.
The opposition parties had been targeting the Congress cabinet minister Bharat Bhushan Ashu and LIT over the alleged auction of the said land at a throwaway price. The trust had auctioned off 3.79 acres (16,344 square yards) of prime land for around ₹98.38 crore, the Bharatiya Janata Party (BJP) and Shiromani Akali Dal (SAD) had alleged, claiming that the land was worth approximately ₹350 crore.
The controversy had erupted after DC Sharma denied fixing the reserve price ( ₹91.86 crores) of the land, while the chairman stated that the price was fixed by a panel led by DC. On Friday, Ashu had also recommended the cancellation of the auction to the state government.
Approval for auction of 22 other properties
Meanwhile, the local bodies department has approved the proceedings of 22 other properties along with the chunk of land in Model Town Extension, that was auctioned by LIT on August 16.
Further, it has been stated that the decision to fix the residential and commercial reserve prices in Gian Singh Rarewala Market at ₹34,000 and ₹46,900 should be taken as per the rules fixed by the department in the past. The decision regarding the reserve price of the LIT complex at Rani Hansi road will be intimated later.
Despite attempts made to reach LIT chairman, he was not available for comments.
BJP, SAD seeks FIR against the chairman
The opposition parties including, BJP and SAD, have sought an FIR against the LIT chairman and others involved, stating that the scam has been proved by the department’s decision to cancel the auction.
BJP leader Bikram Sidhu said, “There were anomalies in fixing the reserve price and the e-auction process. With the local bodies department cancelling the auction, the scam has been proved. An FIR should be lodged against the chairman and others involved in the nexus.”
SAD district president Ranjit Dhillon reiterated the same.

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