Punjab Govt withdraws order telling PSIEC to deposit unused Rs 500 cr

Punjab Government has withdrawn its order asking the PSIEC to deposit the unutilised accumulated fund of Rs 500 crore with the state government.

The order in this regard was communicated by the Director, Treasuries and Accounts to the Administrative Secretary, Department of Industries and Commerce.

The development follows days after the Punjab Small Industries and Export Corporation (PSIEC) Staff Association moved the Punjab and Haryana High Court against the state government asking the corporation to deposit Rs 500 crore from its financial reserves with the state government.

The state government directed various departments (including the Industries Department) to deposit a collective amount of Rs 1,441.49 crore. The PSIEC association, in a civil writ petition, contested that the constitution of the corporation did not allow transfer of funds without the nod of the Punjab Governor. It was also contested that the corporation registered under the Companies Act 2013 did not allow transfer of funds except in shape of loans or dividend, with the prior permission of the Board of Governors, said general secretary of the association Tara Singh.

It is, however, learnt that the Punjab Bureau of Investment has given Rs 140 crore to the state government.

In connection with the state government asking various departments to deposit funds, the National Green Tribunal (NGT) has issued a notice to the state government and ordered a stay on the utilisation of the funds of Punjab Pollution Control Board (PPCB) and Forest and Wildlife Conservation Department till September 3. The state government had directed PPCB to deposit Rs 250 crore and the Forest Department to deposit Rs 84 crore.