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In an intricate financial situation, the Ludhiana Improvement Trust (LIT) is anticipating revenue from the Jalandhar Improvement Trust (JIT) impending property auction. The funds from this auction would enable JIT to repay a loan extended by LIT.
To understand the financial entanglement, it is vital to note that in 2017, JIT procured a bank loan for its Surya Enclave Extension scheme. The loan surged to an impressive Rs 167 crore. As collateral, JIT mortgaged several prime properties, including the iconic Guru Gobind Singh stadium. With a failure to make repayments, the bank decided to put the stadium up for auction. The state government, however, succeeded in postponing this move.
In a financial intervention last year, the state government mediated a deal wherein improvement trusts from Ludhiana and Amritsar granted JIT a loan of Rs 50 crore each. This was executed following an agreement with the bank for a one-time settlement of Rs 112 crore. Immediately, Rs 100 crore was cleared, with LIT shouldering an additional Rs 5 crore, aided by other improvement trusts such as Rajpura and Kartarpur. From the subsequent property auction, it was stipulated that both Ludhiana and Amritsar would receive 40% of the proceeds each, leaving JIT with the remaining 20%. However, the anticipated auction remains on hold.
LIT's financial fortitude was previously bolstered when it sold its prime land to the GST department during the Congress administration. Additionally, with the trust's involvement in numerous development projects in MC areas and new proposals from the ruling party's MLAs, LIT's need for financial liquidity is paramount.
In conclusion, as the Ludhiana Improvement Trust awaits revenue from Jalandhar's property auction, its financial resilience remains intact. However, with ongoing projects and future commitments, the pending funds are crucial for LIT's sustained growth and development.
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