The Punjab government has initiated the auction of properties belonging to chronic VAT and GST defaulters to recover dues amounting to crores of rupees. Finance, Planning and Excise and Taxation Minister Harpal Singh Cheema announced on Friday that the state has intensified its recovery drive against tax evaders by commencing public auctions of their properties.
First Auctions Conducted
The first major auction was held in Mohali on Friday, where the property of a tax defaulter firm, M/s Sumit Engineering, was sold for Rs 13.22 crore. Another successful auction took place in Shahkot, Jalandhar, involving the property of M/s MR Rice Mills, which fetched Rs 1.11 crore. Cheema stated that nearly 20 more properties would be auctioned in the coming months.
Direct Deposits to Treasury
The minister highlighted that a sum of Rs 3.58 crore was deposited by successful bidders directly into the government treasury on Friday, with the balance amount to be legally recovered in the following week. The stringent recovery proceedings include physical attachment and auction of properties, specifically targeting tax defaulters who did not avail themselves of the relief provided under the state's one-time settlement (OTS) scheme.
OTS Scheme Extended
Cheema also announced that the government has extended the OTS scheme until July 31. He described the scheme as a transparent and highly favorable mechanism for taxpayers with pending VAT liabilities to settle their dues quickly, thereby avoiding litigation and coercive state action.
