Terms & Conditions for Sale of Industrial Units:-

i)The sealed offers alongwith earnest money equivalent to 5% of the assessed value or maximum Rs. 5.00 lacs through bank draft in favour of PUNJAB FINANCIAL CORPORATION, payable at CHANDIGARH for the entire unit or machinery as is available at site should reach at Head office of the Corporation, SCO No,95/98, Bank Square, Sector 17-B, Chandigarh and the intending buyers may come for negotiations with the Sub Committee of the Board of Directors of the Corporation.

ii)OFFERS WITHOUT REQUISITE EARNEST MONEY SHALL NOT BE ENTERTAINED.

iii)The successful bidder shall deposit 25% of the sale consideration including earnest money already paid within 10 days. (In case of purchaser of entire unit) and 100% of sale consideration including earnest money already paid in case of purchase of plant and machinery and/or vehicle only within 30 days from the date of issue of offer letter.

iv)In case of purchase of entire unit, the balance 75% is payable in monthly equated installments without any interest in 3 months (if the sale value is less than Rs.100.00 lacs) and 6 months (if the sale consideration is Rs.100.00 lacs upto 150.00 lacs). However, the interest @12% p.a. compounded quarterly is payable from the date of sale agreement if total sale consideration is paid after 3 months but within 12 months (if the sale value is less than Rs.100.00 lacs) and beyond 6 months but within 18 months (if the sale consideration is upto Rs.150.00 lacs).

For units where sale consideration is more than Rs. 150.00 lacs and upto Rs. 500.00 lacs, the interest free period to be allowed shall continue to remain the same i.e. six months from the date of sale agreement. However, if the purchaser wants to avail longer period, then in such cases, the maximum period allowed for the repayment of sale consideration shall be two years along with interest @12% compounded quarterly from the date of sale agreement. For units sold more than Rs. 500.00 lacs, the purchaser shall have the liberty to pay up the balance 75% of the sale consideration amount within nine months from the date of sale agreement without interest or within a maximum period of two years from the date of sale agreement, but with interest @12% compounded quarterly.

If the purchaser fails to pay the total sale consideration within the interest free period allowed and opts for maximum period allowed, then the sale consideration may be recovered in quarterly installments along with the interest @12% per annum compounded quarterly, and in case of default in the repayment of principal installments or interest or both as per schedule drawn in the sale agreement, a penal interest @3% shall be charged over and above the normal interest of @12% for the period of default and on the amount of default.

v)The original borrowers are invited to participate in the bid in their own name or they may bring third party on the date and time mentioned above.

vi) If no offer is brought by the promoters of the unit, Corporation shall be at liberty to sell the property to the highest bidder as per policy of the Corporation.

vii)The offer submitted by the promoter or bidder introduced by the promoter in response to the sale advertisement, shall be entertained by the Sub Committee only if the offer is supported by the requisite earnest money in the shape of a draft as per the terms & conditions of the sale advertisement.

viii)The possession of the property will be handed over to the prospective buyers only on the receipt of the entire sale consideration.

ix)The prospective bidder while submitting his offer should mention “THE OFFER FOR THE PURCHASE OF M/s______”, his address and contact no. on the envelope containing the bid. Use separate envelope for each bid.

x)The property may be inspected with prior permission from the concerned District office of the Corporation at the addresses given below.

xi)The prospective buyers are required to obtain NOC from PSIEC in respect of lease hold plots allotted by PSIEC and shall also be responsible for all statutory/local bodies liabilities, if any.

xii)The purchaser shall have to pay registration /stamp paper charges for the execution of the sale deed after making payment of entire sale consideration.

xiii)The area of land mentioned in the advertisement is as mortgaged with the Corporation. The prospective buyers may carry out due diligence with regard to land from the Revenue Authorities.

xiv)Any offer improved and submitted after the conclusion of the meeting of Sub Committee shall not be entertained.

xv)The Corporation reserves the right to accept any offer or reject any/all offers and also reserves the right to vary the terms and conditions of its advertisement without notice, at its discretion.

xvi)The prospective buyers, who have purchased the property in the past from the Corporation and are in default or against whom, the Corporation has started recovery proceedings to recover the sale proceeds, shall not be eligible to give bid.

xvii)The auction purchaser shall be at liberty to get the CLU (change of land used) changed from the concerned authority at his own level and cost/expenses shall be borne by him.

xviii)The proposal for sale of machinery can be considered separately.

xix)The Corporation may offer a cash discount of 3% of the total sale consideration amount provided the purchaser pays the balance 75% of the sale consideration amount within 30 days from the date of the sale agreement.

Note:: The Corporation has purchased properties at Sr.No.5 through Court U/s 31 of SFC’s Act, & by virtue of sale certificate the Corporation has become the absolute owners of this properties

THE MINIMUM ACCEPTABLE PRICE OF THE PROPERTIES IS NEGOTIABLE AS PER THE POLICY OF THE BOARD i.e. upto 75 % of the assessed value.

PATIALA and SANGRUR: Building No.1, Ist Floor, Near Sandhu Hospital, Dukhniwaran Road, Patiala, Ph. 0175-2362357, 0175-5000311
LUDHIANA: Gill Road, Near Dhuri Railway Crossing Line, Preet Nagar, Ludhiana, Punjab 141003, Ludhiana Ph., 0161-2539312, 0161-5067441
FEROZEPUR, FARIDKOT & BATHINDA: District Industries Centre, Malwal Road, Ferozepur Ph. 01632-220060, 0163-2502209
JALANDHAR, AMRITSAR, KAPURTHALA & HOSHIARPUR: Main Garha Road, Above Bank of India, Jalandhar, Ph., 0181-2482614, 0181-5005551.

MANAGING DIRECTOR

PUNJAB FINANCIAL CORPORATION

95-98, BANK SQUARE, SECTOR 17-B,

CHANDIGARH-160017 PH: 0172-709295-96,

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