JIT on the verge of bankruptcy, seeks funds to pay EMI

Rachna Khaira

Tribune News Service

Jalandhar, May 28

The Jalandhar Improvement Trust (JIT) is on the verge of bankruptcy as it has sought financial help from the Punjab Local Bodies Department to pay its installment of Rs 13 crore against the loan of Rs 175 crore it had taken in 2011. Also, it has sought permission to auction its properties to pay off the loan.

According to a letter (a copy of which is in possession of The Tribune), EO Arvind Sharma has written to the Additional Secretary, Punjab Local Government that the trust had taken a loan of Rs 175 crore in 2011, out of which it still had to pay Rs 113 crore as of today.

He further said that by June 30, the trust had to pay an EMI of Rs 13 crore, for which it had issued recovery notices to the plot owners. Also, he had sought approval from the department to auction its properties to pay the loan and the immediate release of Rs 10 crore to pay the outstanding EMI.

The official has pleaded to the department to arrange Rs 26 crore immediately to carry out the development works of various residential projects. A majority of the plot owners have refused to pay the EMIs as no development has taken place in the past few years.

According to Sharma, the trust is making all efforts to get out of the loan cycle that has halted all development works in the area. “Though we have served over 700 recovery notices to the allottes of various schemes, very few have come forward to pay as we could not carry out much development work in their area. We hope that the department will support us in getting out of this financial crunch,” said Sharma.

Sources said that during the tenure of former JIT chairman Tejinder Singh Bittu from 2003-2006, the trust had assets worth Rs 300 crore and things went haywire during the tenure as Akali leader Baljeet Singh Neela Mahal as its chairman. Despite repeated attempts, Neela Mahal could not be contacted.

How JIT landed in trouble

In 2011, the JIT had framed a “development scheme” for the allotment of residential plots in Surya Enclave Extension in nearly 94.97 acres. For this, it took a loan of Rs 175 crore to develop the scheme. It offered 431 plots of various sizes, ranging from 100 square yards to 500 square yards to the general public at a reserve price of Rs 17,000 per square yards.

Although it had issued allotment letter to around 300 allottes after taking a substantial amount of money from them, it failed to hand over the possession of the plots to them for more than three years due to a stay order by the Punjab and Haryana High Court in the same year.

Seventeen residents from the area, while seeking the court’s intervention, contended that they were given just 30 days to raise objections against the scheme even as there was a statutory provision of 60 days. They also said that their objections were not properly heard by JIT officials.

In the CWP 3559 of 2011, Arjan Singh and Others challenging the notifications 36 and 42 of the Punjab Town Improvement Act 1922, the High Court had ordered status quo regarding the possession of the land in the area. The legal battle also brought forward the name of former JIT chairman Baljit Singh Neelamahal who was accused of extending benefits to some of his relatives in the project. Neelamahal later denied charges by saying that he was being maligned by some persons who did not want to see development in the city.