A fresh public interest litigation (PIL) has been filed in the Punjab and Haryana High Court, putting a major roadblock in front of the Punjab government's ambitious plan to auction prime public land. The legal challenge, initiated by a lawyer based in Chandigarh, argues that the state must first recover massive outstanding dues from its own departments before resorting to selling public assets.
Core Demand: Recover Dues Before Selling Land
The petition, filed by advocate Rajbir Singh, urgently requests the court to stop the state from moving forward with land auctions under its 'Optimum Use of Vacant Government Land' (OUVGL) scheme. The central argument is straightforward: government departments must clear their staggering unpaid bills, which total Rs 2,582 crore, before any public land is sold.
The first hearing for this significant case is scheduled for January 12, 2026. The PIL specifically targets properties owned by the Punjab State Power Corporation Limited (PSPCL) that are slated for auction. The petitioner contends that selling such assets while recoverable dues remain unpaid is akin to "selling the family silver."
Who Owes What? A Breakdown of Major Defaulters
The litigation provides a detailed breakdown of the government departments that have failed to pay their power bills, leading to the massive outstanding amount. According to the petition, the major defaulters include:
- The Water Supply Department, with dues of Rs 1,014 crore.
- The Local Government Department, owing Rs 852 crore.
- The Rural Development Department, with pending bills of Rs 383 crore.
- The Health Department, which owes Rs 127 crore.
Citing Section 56 of the Electricity Act, 2003, the petitioner has sought clear directions for the PSPCL. The plea demands that the power utility must initiate strict recovery proceedings or even disconnect the power supply to these chronic government defaulters to recover the public money.
Broader Implications and Demands
The PIL goes beyond just the immediate recovery of departmental dues. It highlights a larger financial concern: pending power subsidy arrears exceeding Rs 10,000 crore. The petitioner argues that if the government enforces recoveries from defaulting departments, the need to auction valuable PSPCL land—expected to generate around Rs 2,219 crore—would become unnecessary, as the amounts are nearly equivalent.
Furthermore, the plea raises a red flag about the potential misuse of funds from such asset sales, especially with the 2027 Punjab Assembly elections on the horizon. It seeks a prohibition on diverting the sale proceeds for populist expenditures. Instead, it urges the court to ensure that any funds generated are ring-fenced and used solely for the benefit of the parent departments to which the land originally belonged.
An additional significant demand calls for the return of unused acquired land to its original owners. The petition states that where land taken for public purposes is no longer needed, it should be offered back to the original owners at the rates prevalent during the time of its acquisition, ensuring fairness and justice.
This legal move sets the stage for a crucial debate on fiscal responsibility, the prioritization of public asset management, and the recovery of taxpayer money before the disposal of state-owned properties. The outcome of the hearing in 2026 could have profound implications for Punjab's finances and governance.
