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The Punjab government has launched a large-scale enforcement drive to recover outstanding Value Added Tax (VAT) and Goods and Services Tax (GST) dues by auctioning properties belonging to chronic tax defaulters. The Department of Excise and Taxation has already completed major auctions in Mohali and Jalandhar, generating recoveries from firms that failed to settle liabilities despite repeated notices and opportunities under the state’s One Time Settlement (OTS) Scheme. Finance Minister Harpal Singh Cheema said nearly 20 additional property auctions have been scheduled across Punjab in the coming weeks. The government has simultaneously extended the OTS Scheme until July 31, 2026, providing taxpayers another opportunity to clear legacy dues. The initiative forms part of a broader revenue recovery programme aimed at strengthening tax compliance and securing pending government revenues.
The Punjab government has intensified its recovery action against tax defaulters by commencing public auctions of properties belonging to chronic VAT and GST evaders, with the first round of sales conducted in the past week across Mohali and Jalandhar. The move is aimed at recovering long-pending tax dues from businesses and individuals who failed to discharge their liabilities despite receiving repeated notices and opportunities for settlement through government schemes.
According to Finance, Excise and Taxation Minister Harpal Singh Cheema, the Department of Excise and Taxation has successfully completed three major property auctions as part of the recovery drive. The largest transaction involved the sale of a property belonging to M/s Sumit Engineering in Mohali for INR 13.22 crore. Another auction was carried out in Shahkot, Jalandhar, where a property owned by M/s MR Rice Mills fetched INR 1.11 crore. The government stated that INR 3.58 crore had already been deposited into the state treasury by successful bidders, while the remaining proceeds would be recovered and deposited in accordance with established procedures.
Cheema said the auctions reflected the state’s determination to enforce tax compliance and recover legitimate public revenue. He noted that the recovery proceedings include the physical attachment and auction of assets and are specifically targeted at habitual defaulters who chose not to avail themselves of relief measures offered under the One Time Settlement Scheme.
The minister emphasised that the government’s primary objective remains the recovery of public funds rather than punitive action. To encourage voluntary compliance, Punjab has extended the OTS Scheme until July 31, 2026. The scheme provides taxpayers with pending VAT liabilities an opportunity to settle outstanding dues and avoid litigation, disputes and coercive recovery measures.
Officials indicated that the latest enforcement action follows a wider campaign launched by the state to recover legacy tax arrears. Earlier this year, the taxation department attached 136 properties valued at more than INR 91 crore as part of efforts to recover pre-GST dues. Several properties had already been auctioned under that programme, generating recoveries for the state exchequer.
The government has warned that taxpayers who continue to ignore statutory obligations will face stronger enforcement measures. Cheema said the department has identified numerous additional properties belonging to chronic defaulters and has already scheduled nearly 20 more auctions across various districts. He added that the department would continue pursuing all available legal remedies, including attachment of bank accounts, seizure of assets and auctions of movable and immovable properties, to recover outstanding government dues.
Source - PTI
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