Property Auction Fetches Rs 1.21 Crore
Chandigarh: The Punjab Taxation Department has achieved major breakthroughs in its ongoing drive to recover outstanding Value Added Tax (VAT) dues through property auction proceedings in Patiala district, recovering Rs 1.21 crore through successful property auction alongside securing an instant deposit of Rs 18.46 lakh under the One-Time Settlement (OTS) Scheme. Highlighting these recent developments, Punjab Finance, Excise and Taxation Minister Advocate Harpal Singh Cheema on Wednesday called upon all eligible defaulting dealers across the state to settle their long-pending liabilities under the OTS Scheme before the July 31 deadline or face stern recovery actions, including property attachment and public auctions.
Detailing the successful recovery cases in a press communiqué issued here, Finance Minister Harpal Singh Cheema said, “In Patiala district, the auction of property belonging to M/s Guruji Feeds, Rajpura, against whom a total tax demand of Rs 57.78 lakh was pending, was scheduled for July 27, 2026. Following the initiation of auction proceedings, the dealer came forward to avail itself of the beneficial terms under the OTS Scheme and deposited Rs 18.46 lakh to settle the case.” The Finance Minister said that this case illustrates the substantial relief available to eligible defaulters under the scheme, showing how timely settlement allows businesses to avoid the attachment and forced sale of their assets.
In another major enforcement action, Excise and Taxation Minister Cheema revealed that the department successfully auctioned the property of M/s Samana Roller Flour Mill Limited for Rs 1.21 crore, significantly exceeding its reserve price of Rs 74.31 lakh by approximately Rs 46.69 lakh. “In strict compliance with the prescribed auction procedure, an amount of Rs 30.25 lakh, representing 25 percent of the successful bid, was recovered immediately from the highest bidder on the day of the auction”, he added.
Appreciating the commendable efforts of the Taxation Department officers, the Cabinet Minister Harpal Singh Cheema emphasised that these two contrasting outcomes convey an unmistakable message to all VAT defaulters in Punjab. He said, “While the OTS Scheme offers a fair and genuine opportunity for an amicable settlement on highly beneficial terms, failing to utilise this window will inevitably lead to stringent recovery measures. The resolution achieved by M/s Guruji Feeds during the auction process proves that the scheme provides a practical way forward, and eligible dealers should voluntarily step up rather than waiting for the state to launch coercive enforcement.”
The Excise and Taxation Minister Harpal Singh Cheema issued a strong appeal urging all eligible default cases to be resolved before the OTS Scheme expires on July 31, 2026. Issuing a firm warning, Minister Cheema made it clear that no leniency will be extended once the deadline passes. He said, “Defaulters who neglect to clear their dues under the scheme by the prescribed date will face uncompromising legal action, including immediate attachment and auction of their movable and immovable properties.”
He reiterated that the Taxation Department will continue its state-wide recovery drive with total transparency, firmness, and impartiality to safeguard government revenue.
