The Punjab government has initiated the auctioning of properties belonging to VAT and GST defaulters to recover pending dues amounting to crores of rupees. Finance, Excise and Taxation & Planning Minister Harpal Singh Cheema announced on Friday that the state government has intensified its recovery drive against chronic tax evaders by officially commencing public auctions of their properties.
First Major Auction Conducted in Mohali
The first significant property auction was successfully carried out in Mohali against the defaulter firm M/s Sumit Engineering, where the property was sold for Rs 13.22 crore on June 19. Another successful auction took place in Shahkot, Jalandhar, involving the property of M/s MR Rice Mills, which fetched a total of Rs 1.11 crore.
More Auctions Scheduled
Cheema stated that nearly 20 additional property auctions have already been scheduled across various districts in the coming weeks and months. He further mentioned that a sum of Rs 3.58 crore has already been deposited by successful bidders directly into the government treasury on Friday, while the remaining balance will be legally recovered and deposited within the coming week as per established rules.
Strict Measures Against Habitual Defaulters
The recovery drive includes strict measures such as the attachment and auction of properties. These actions target habitual tax defaulters who failed to take advantage of the substantial relief offered under the state's One Time Settlement (OTS) Scheme. Cheema added that the government has extended the OTS Scheme up to July 31. He said that this scheme provides a transparent and highly favourable mechanism for taxpayers with pending VAT liabilities to settle their outstanding dues quickly, thereby completely avoiding litigation, ongoing disputes, and coercive state action.
