Punjab Finance Minister Harpal Singh Cheema asks VAT defaulters to clear OTS dues by July 31 or face property attachment and public auction.

Punjab Finance, Taxation and Excise Minister Advocate Harpal Singh Cheema has urged all eligible VAT defaulters across the state to clear their outstanding tax liabilities under the One Time Settlement (OTS) Scheme before July 31, 2026, cautioning that strict legal action, including property attachment and public auction, will be initiated against those who fail to comply.

Addressing the issue, the Finance Minister Harpal Singh Cheema said the Punjab Taxation Department is intensifying its recovery drive to ensure the collection of long-pending government dues while also giving eligible taxpayers a final opportunity to settle their liabilities through the OTS scheme.

Patiala Recovery Drive Brings Strong Results

Highlighting the department’s recent achievements, Cheema said the recovery campaign in Patiala district has yielded encouraging results. The department recovered ₹1.21 crore through the auction of a defaulter’s property. Additionally, another defaulting dealer voluntarily deposited ₹18.46 lakh under the OTS scheme, demonstrating the effectiveness of the government’s recovery efforts.

Guruji Feeds Opts for OTS During Auction Process

Harpal Singh Cheema revealed that M/s Guruji Feeds, Rajpura, had outstanding VAT dues of ₹57.78 lakh. Although the property was scheduled for auction on July 27, 2026, the dealer chose to avail the benefits of the OTS scheme after the auction process began and deposited ₹18.46 lakh to resolve the matter.

According to the minister Harpal Singh Cheema, this case reflects how the OTS scheme provides substantial relief to eligible taxpayers while allowing businesses to avoid property attachment and forced auction through timely settlement.

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Property Auction Fetches Higher-Than-Expected Value

The Finance Minister Harpal Singh Cheema also referred to another significant recovery involving M/s Samana Roller Flour Mill Limited. The department successfully auctioned the company’s property for ₹1.21 crore, exceeding its reserve price of ₹74.31 lakh by ₹46.69 lakh.

Harpal Singh Cheema said that as per the prescribed auction procedure, 25 percent of the winning bid amount, equivalent to ₹30.25 lakh, was collected immediately from the highest bidder on the day of the auction, ensuring transparency and compliance with legal procedures.

Final Opportunity Before Deadline

Calling the two recovery cases a clear message to all VAT defaulters, Cheema said the OTS scheme offers a valuable opportunity to settle pending tax dues on favorable terms. However, he warned that businesses choosing to ignore the scheme would face stringent recovery measures.

The minister appealed to all eligible dealers to voluntarily clear their dues before July 31, 2026, instead of waiting for enforcement action. He also clarified that no extension or additional relief will be provided once the scheme expires.

Strict Action After July 31

Harpal Singh Cheema reiterated that dealers who fail to settle their eligible dues within the prescribed timeline will face immediate legal proceedings, including the attachment and auction of both movable and immovable properties.

He emphasized that the Punjab Government remains committed to safeguarding public revenue and that the Taxation Department will continue its statewide recovery campaign with transparency, fairness, and firm enforcement to ensure effective tax collection.

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