Punjab Newsline | Chandigarh
Punjab Finance, Taxation and Excise Minister Advocate Harpal Singh Cheema on Wednesday appealed to all eligible defaulting dealers across the state to settle their long-pending tax dues under the One Time Settlement (OTS) Scheme before the July 31 deadline, warning that strict recovery measures, including property attachment and public auction, would be initiated against those who fail to comply.
Cheema said the Punjab Taxation Department has achieved a major success in its VAT arrears recovery campaign in Patiala district by recovering ₹1.21 crore through the auction of a defaulter’s property. In addition, ₹18.46 lakh was deposited immediately under the OTS scheme, highlighting the effectiveness of the ongoing drive.
In an official statement, the Finance Minister detailed the successful recovery cases. He said that M/s Guruji Feeds, Rajpura, had outstanding tax dues amounting to ₹57.78 lakh. The property was scheduled for auction on July 27, 2026, but after the auction process commenced, the dealer opted to avail the beneficial provisions of the OTS scheme and deposited ₹18.46 lakh to settle the matter.
Cheema said the case demonstrates the significant relief available to eligible defaulters under the scheme and proves that timely settlement can help businesses avoid attachment and forced sale of their properties.
Referring to another major action, the Excise and Taxation Minister said the department successfully auctioned the property of M/s Samana Roller Flour Mill Limited for ₹1.21 crore, which was ₹46.69 lakh higher than its reserve price of ₹74.31 lakh. “Following the prescribed auction procedure strictly, 25 percent of the successful bid amount, that is ₹30.25 lakh, was recovered immediately on the day of the auction from the highest bidder,” Cheema stated.
Cabinet Minister said the two cases send a clear message to all VAT defaulters in Punjab. “While the OTS scheme offers a golden opportunity to settle dues on highly beneficial terms, those who fail to avail themselves of this opportunity will face stringent recovery action. The settlement by M/s Guruji Feeds during the auction process itself is proof that the scheme provides a practical and workable solution,” he said.
Cheema urged all eligible dealers to come forward voluntarily instead of waiting for coercive action by the government.
Minister made a strong appeal to settle all eligible pending cases before the OTS scheme expires on July 31, 2026. He also clarified that no relief of any kind would be granted after the deadline.
“Defaulters who do not deposit their outstanding dues under the scheme by the prescribed date will face uncompromising legal action, including immediate attachment and auction of their movable and immovable properties,” he warned.
Reiterating the government’s commitment to protecting public revenue, Cheema said the Taxation Department will continue its statewide recovery campaign with full transparency, firmness and fairness to ensure effective collection of government dues.
