ABSURD, BASELESS AND WITHOUT ANY IOTA OF TRUTH, INDUSTRIES MINISTER ARORA REFUTES ALLEGATIONS OF FAVOURITISM BY PSIEC TO GRG DEVELOPERS

ABSURD, BASELESS AND WITHOUT ANY IOTA OF TRUTH, INDUSTRIES MINISTER SUNDER SHAM ARORA
REFUTES ALLEGATIONS OF FAVOURITISM BY PSIEC TO GRG DEVELOPERS

EXPRESSES SURPRISE AT OPPOSITION FOR THEIR ABJECT LACK OF KNOWLEDGE ABOUT CASE AS POSSESSION OF PROPERTY IN QUESTION IS STILL WITH ARCIL

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HOSHIARPUR (ADESH PARMINDER SINGH): Refuting the allegations as outrightly absurd, baseless and merely a figment of their imagination, Industries Minister Sunder Sham Arora on Thursday tore into the opposition exposing them for their abject lack of factual information about the case adding that the ownership and physical possession of the property which was originally allotted to JCT Electronics Ltd. still vests with ARCIL after the company went into liquidation.

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Training his guns on SAD and AAP leaders for raising issue where none exists, Arora said the mindset demonstrates their desperation to stay politically active even at the expense of frivolous and unfounded facts.

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It may be recalled that the auction of Plot No. A-32, Phase VIII, Industrial Area, Mohali was conducted by Assets Reconstruction Corporation of India Ltd. (ARCIL) during February 2020 under the provisions of SARFAESI Act, 2002. M/s JCT Electronics Ltd., allottee of said plot had become defaulter of the lending/ financial institutions as a consequence of which company went into liquidation following which the Hon’ble Punjab and Haryana High Court vide its order dated 26.08.2016 ordered winding up of the company and official liquidator was appointed by the Court to take over the assets of company.

ARCIL had then taken over the possession of said property under appropriate provisions of law and made several attempts to monetize the assets.
Minimum bid price of Rs. 105 crore for auction of the plot was fixed by ARCIL at the time of the first e-auction held in December 2018 with the consent of the lenders based on the valuation report of reputed valuers. However, no bids were received at this reserve price.
Subsequently too, due to dismal response from prospective bidders, reserve price of the plot was reduced to Rs. 95.50 crore and then to Rs. 90.50 crore. However, again no bids were received. The Minister pointed out adding that the open e-Auction was again conducted by ARCIL during February 2020 at the reserve price of Rs. 90.50 crore.

During this e-auction, the same was sold at the highest bid amount of Rs. 90.56 crore to M/s GRG Developers & Promoters LLP in open, fair and transparent manner, Arora pointed out further.

Responding to news items appearing in a section of media, the Minister underlined there was not even an inkling of any doubt over the auction process. He also emphasized that there was/is not any role of Govt. of Punjab and PSIEC in conduct of the e-auction which was carried out by an agency registered with RBI under the provisions of SARFAESI Act, 2002.

The Minister also clarified that agreement dated 14.12.2020 with ARCIL and auction purchaser was executed by PSIEC after obtaining advice of renowned Senior Advocate, Mrs. Munisha Gandhi on the panel of Corporation to safeguard the interest of State Govt./ PSIEC with regard to realization of dues accruing from the claim lodged with ARCIL on account of unearned increase, etc.

Moreover, the Minister vehemently refuted the allegation of causing any financial loss to the State Govt./ PSIEC terming it politically motivated as ownership of the property and physical possession still vests with ARCIL. PSIEC has not issued NOC for effecting transfer of property in favor of auction purchaser. In fact to protect its financial interest, PSIEC has categorically conveyed to ARCIL and auction purchaser that NOC for transfer will be provided only after the matter is decided by the Finance Department, Govt. of Punjab. After receipt of advice from the Finance Department, Govt. of Punjab, appropriate decision would be taken in this matter and factual position would be brought before the Hon’ble Court. Presently, matter is subjudiced in the Hon’ble Punjab & Haryana High Court.

( K. MIANPURI)