Mohali industrialists seek scrapping of 50% unearned clause

Mohali Industries Association (MIA) president Anurag Aggarwal said Punjab Small Industries and Export Corporation (PSIEC) has abolished the 50% clause as per the 1992 policy, but PICTC continues to use it

Members of Mohali Industries Association on Thursday held a conference at Chandigarh Press Club, demanding scrapping of the 50% unearned clause and a vigilance probe into alleged discrimination.

Members of Mohali Industries Association during a conference at the Chandigarh Press Club on Thursday. (HT Photo)

Unearned increase is the difference between the price paid by the original allottee/lessee and the market value of the site/building at the time of transfer. Under the clause, in case of a sale or transfer of a plot leased out by Punjab Information and Communication Technology Corporation (PICTC), 50% of the unearned increase of the plot has to be paid to the corporation by the original allottee.

Mohali Industries Association (MIA) president Anurag Aggarwal said, “Punjab Small Industries and Export Corporation (PSIEC) has abolished the 50% clause as per the 1992 policy, but PICTC continues to use it. Two different policies are being followed in the same department of industries and commerce, which is surprising.”

MIA member Randeep Singh said, “As per the lease deed, 50% unearned clause is to be charged from the original allottee only, but in many cases it has been carried forward to the second buyer without any policy and without any board of directors’ decision.”

Dilpreet Singh, association’s general secretary, claimed that from the records available, out of 144 plots, 114 contain the 50% unearned increase clause, of which 57 plots were transferred without invoking the clause. “The said clause was invoked in only two cases,” he alleged.

Demanding the vigilance probe, Harbans Saini, an MIA member said, “We want it to be investigated as to why the unearned clause was invoked in just two cases and revoked in 57?”

“We have emailed a memorandum to the Punjab chief minister and requested to remove the 50% unearned increase clause,” said KS Mahal, former president of the industrialists’ body.