Punjab taxation dept recovers Rs 1.21 crore through property auction, says Harpal Cheema
Babushahi Bureau
Chandigarh, July 29, 2026: The Punjab Taxation Department has intensified its drive to recover outstanding Value Added Tax (VAT) dues, recovering ₹1.21 crore through the auction of a property in Patiala district and securing an immediate deposit of ₹18.46 lakh under the One-Time Settlement (OTS) Scheme.
Punjab Finance, Excise and Taxation Minister Advocate Harpal Singh Cheema on Wednesday urged eligible VAT defaulters to settle their pending tax liabilities under the OTS Scheme before its July 31 deadline, warning that strict recovery measures, including property attachment and public auctions, would follow after the scheme expires.
Sharing details of the recovery drive, Cheema said the auction of a property belonging to M/s Guruji Feeds, Rajpura, was scheduled for July 27, 2026, over pending tax dues of ₹57.78 lakh.
However, following the initiation of auction proceedings, the firm opted to avail the benefits of the OTS Scheme and deposited ₹18.46 lakh to settle the case.
Cheema said the case demonstrated the relief available to eligible defaulters under the scheme and showed that timely settlement could help businesses avoid the attachment and forced sale of their assets.
In another major enforcement action, the Taxation Department successfully auctioned the property of M/s Samana Roller Flour Mill Limited for ₹1.21 crore, significantly higher than the reserve price of ₹74.31 lakh.
The auction fetched approximately ₹46.69 lakh more than the reserve price. An amount of ₹30.25 lakh, representing 25 per cent of the successful bid, was deposited immediately by the highest bidder on the day of the auction, the minister said.
Cheema said the two cases highlighted the options available to VAT defaulters—voluntary settlement under the OTS Scheme or stringent recovery proceedings in cases of continued non-compliance.
“While the OTS Scheme provides a fair opportunity for an amicable settlement on beneficial terms, failure to utilise this window will lead to strict recovery measures,” he said.
The Finance Minister urged all eligible dealers to resolve their pending cases before the OTS Scheme expires on July 31, 2026. He warned that no further leniency would be extended after the deadline.
“Defaulters who fail to clear their dues under the scheme by the prescribed date will face uncompromising legal action, including the immediate attachment and auction of their movable and immovable properties,” Cheema said.
He added that the Punjab Taxation Department would continue its statewide recovery drive with transparency, firmness and impartiality to safeguard government revenue.