Jalandhar improvement trust to sell its office for repayment of loan | punjab | jalandhar | Hindustan Times
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Jalandhar improvement trust to sell its office for repayment of loan

Fund-starved body now owes Rs 113 crore to Punjab National Bank, from which it took a loan of Rs 173 crore for a housing project five years ago.

punjab Updated: Oct 06, 2017 11:49 IST
Harvinder Kaur
Along with its main office (above), the trust is in the process of putting 5 acres of land under the hammer. The fund-starved body owes ~113 crore to PNB; it took a loan of ~173 crore for a housing project five years ago.
Along with its main office (above), the trust is in the process of putting 5 acres of land under the hammer. The fund-starved body owes ~113 crore to PNB; it took a loan of ~173 crore for a housing project five years ago.(HT File )

The Jalandhar improvement trust, which has been at the centre of controversy this year due to various instances of corruption, is now planning to sell its office for the repayment of a bank loan.

The fund-starved body currently owes Rs 113 crore to Punjab National Bank, out of the total Rs 173-crore loan it took from the bank five years ago for the Surya Enclave Extension Project.

Along with its main office at the Skylark Chowk, the trust is also in the process of putting its 5-acre land on the Jalandhar-Amritsar highway under the hammer. While the trust office, spread over 1.5 acres, is located in a commercial area, the property on the highway falls in a residential area.

The trust, which is required to pay a loan instalment of Rs 9 crore every three months, is pinning its hopes on the sale of its office property, which is expected to be sold at a high rate. With no major revenue generation source or any other prime properties left to sell, the trust is currently struggling to continue development projects and maintenance works in its colonies.

Jalandhar improvement trust executive officer Jatinder Singh said, “We are waiting for the government to announce reserve rates for these properties. Thereafter, we will send the proposal for the sale of both the properties to the local bodies department.” He said at present these two properties are the only prime assets of the trust.

The two trust properties will be put on sale possibly by the next year as the local bodies department is yet to give its final nod on the matter. After selling its existing office, the trust is planning to shift its office to the Surya Enclave Extension Area, a housing project that is still being developed