The Ludhiana Improvement Trust (LIT), a key urban development body, finds itself in a severe financial bind. Its reserves have been drained, primarily because decades of interest-free loans extended to other government departments and municipal bodies remain unpaid. The total outstanding amount has now swelled to a staggering more than Rs 64 crore.
A Legacy of Unrecovered Loans
Over the past 25 years, the Trust has frequently functioned as a secondary bank for the Punjab state government. Internal records reveal a consistent one-way flow of funds to support other struggling improvement trusts and boards across the state. Despite conditions for future repayment, the money has never been returned.
The list of major defaulters is led by the Jalandhar Improvement Trust (JIT), which owes a massive Rs 57 crore from transfers made in 2021 and 2022. Other significant debts include Rs 2 crore owed by the Punjab Water Supply and Sewerage Board since 2001, and a combined Rs 4.5 crore from Gurdaspur and Fazilka Trusts from recent transfers in 2022 and 2024. The Nawanshahr Nagar Council also has an outstanding debt of Rs 65.7 lakh dating back to the year 2000.
Mounting Pressure and Stalled Revenue
Compounding the crisis, the LIT continues to face intense pressure from local lawmakers to fund infrastructure projects within the Municipal Corporation's (MC) jurisdiction. These areas are technically outside the Trust's primary responsibility. This demand forces LIT to cover the civic body's shortfall, further depleting its budget for development in its own colonies.
Simultaneously, the Trust's attempts to generate fresh revenue have hit roadblocks. Plans to liquidate prime real estate assets, like the multi-storey complex on Rani Jhansi Road, have stalled. Authorities have spent a year debating whether to auction the complex outright or lease it for rental income, resulting in zero revenue generated from the prime site to date.
Leadership's Dilemma and Future Steps
LIT Chairman Tarsem Bhinder expressed the agency's predicament, stating he issues reminders to the concerned departments every month or two but has received no positive response. The financial strain has created a dilemma, leaving the Trust unable to adequately fund its own mandated development works.
"We are focusing on organizing new e-auctions to generate the revenue we need to stay afloat," said Bhinder. The Trust's strategy now hinges on successfully monetizing its assets, as recovering the old loans seems increasingly unlikely. This situation highlights a systemic issue of inter-departmental financial dependencies crippling local development authorities in Punjab.
