Punjab cabinet nod to OTS scheme to recover pre-GST arrears

Finance minister Harpal Singh Cheema said after January 1, 2026, recovery proceedings will commence for those who fail to opt for this scheme.

The Punjab cabinet on Wednesday gave its nod to the One Time Settlement Scheme for the recovery of outstanding dues in multiple pre-GST acts cases for trade and industry to enhance compliance.

The cabinet meeting held in Chandigarh was chaired by chief minister Bhagwant Mann.

Announcing this decision after a cabinet meeting chaired by chief minister Bhagwant Mann, finance minister Harpal Singh Cheema said that the OTS will be implemented from October 1 and shall remain valid till December 12. He said that this scheme is applicable to all taxpayers whose assessment orders were framed by September 30, 2025, and it will not apply to government food agencies.

“The OTS aims to resolve approximately 20,039 pending cases involving outstanding dues of nearly ₹11,968.88 crore across various pre-GST acts, providing substantial relief to the state’s trade and industry. This marks the third such scheme offered by the AAP-led Punjab government, and it will be the final opportunity for taxpayers to settle their outstanding dues,” Cheema said.

The minister said that if all eligible taxpayers avail this scheme, the government anticipates a recovery of approximately ₹3,344.50 crore while waiving over ₹8,441.56 crore in old dues.

Relief for rice millers

The cabinet also approved the introduction of the OTS policy for Rice Mills. Millers will be bound to settle their accounts with each state procurement agency after the milling period is over to be considered for the allotment of paddy next year.

The spokesman said some rice mills, over the years, have not deposited their outstanding dues, due to which these millers have been declared defaulter and legal/arbitration proceedings have been initiated against them.

“Such proceedings have been pending with various courts/legal forums since the last many years. The new OTS has been introduced to minimise the litigation cases of all the agencies, settlement of the cases under the policy, so that sick rice units are functional again, and revival of industrial units to create more employment opportunities in the state. Likewise, it will also act as a catalyst for smoother and expedited lifting of the paddy from the mandis,” the government spokesperson said.

Apartment and property rule tweaked

The cabinet also gave its consent to amend Section 5(1), 5(3) (ii), and Section 5(8) of the Punjab Apartment and Property Regulation Act, 1995.

This will ensure the development of colonies/areas in a proper and planned manner, thereby mitigating the problems faced by the general public. The cabinet also gave its concurrence to amend the Punjab Goods and Services Tax (Amendment Bill) 2025 in order to facilitate taxpayers and ensure tax compliance by the taxpayers. Pertinently Finance Act, 2025 has amended the provisions of the Central Goods and Services Tax Act, 2017 as per the recommendation of the GST Council. Similar amendments have to be carried out in the Punjab Goods and Services Tax Act, 2017.

Special NIA court to be set up in Mohali

The cabinet also gave its consent to constitute a Special NIA Court in Mohali to avoid delays in trials. One post of district and sessions judge/additional district and session judge level for the constitution of the executive special court at Mohali will be created for the investigation of cases under Section 22 of the NIA Act at Mohali. Apart from NIA, this court will also be mandated to hear cases from ED, CBI, and other special cases.

Nod to prosecute ex-minister Dharamsot in bribery case

Chandigarh The cabinet also gave prosecution sanction against former forest minister Sadhu Singh Dharamsot in a corruption case registered by the vigilance bureau in 2022.

This paves the way for VB to prosecute Dharamsot, who was a minister during the Amarinder Singh-led Congress government, in a case registered by VB for accepting ₹1.5 crore as a bribe in June 2022.

Dharamsot is embroiled in several cases, including the forest scam, PMLA, and disproportionate assets being probed by the VB and the Enforcement Directorate (ED). He is currently out on bail in all the cases.

According to the VB probe, forest department contractor Harminder Singh Hummy had disclosed in his statement, recorded under Section 27 of the Indian Evidence Act, that he maintained a handwritten diary regarding bribes given to senior officers of the forest department and political leaders since 2017.

The diary was recovered from his place, and the perusal and investigation into the contents of the diary revealed the modus operandi of the culprits, which led to their arrests.

Hummy stated that he paid ₹500 for felling each khair tree to Dharamsot and that the former minister received alleged bribes for transfers of DFOs, rangers, block officers, and forest guards, the VB probe said.

ED had also arrested Dharamsot in an investigation under the PMLA, which had revealed that the former minister, during the check period from 2017-2022, which included his tenure as the forest minister in the then Congress government, acquired assets disproportionate to his and his sons’ known sources of income.

The ED initiated an investigation based on the VB’s FIR and arrested Dharamsot on January 15, 2024. The ED also provisionally attached properties worth ₹4.58 crore belonging to Dharamsot and his sons, including residential plots, a house, a flat, bank balances, and mutual fund investments.