Close on the heels of the infamous city centre scam, in which Punjab government has started vigilance probe against former chief minister Amarinder Singh, his media advisor BIS Chahal and 18 others, the state is sniffing another major scam in the disinvestments of Punjab Tractors Limited during the regime of Singh.
Documents (in the possession of FE) reveal that the then government allowed the Punjab State Industrial Development Board (PSIDC) to dispose off its share in Punjab Tractors Limited when the share had got a drubbing at the bourses causing a huge loss to the government. Sources said that the PTL share of face value of Rs 10 was once quoted at Rs 1,510 per share. It was at this time that the managing director of the PSIDC had proposed to disinvest PTL stake.
However, surprisingly the approval was given much later when the stock had nosedived and the deal was clinched with CDC Financial Services (Mauritius) Limited at the rate of just Rs 153 per share.
Even the former managing director of PTL, Yash Mahajan, had observed in his note to PTL chairman that the issue had assumed immediate concern as there had been more a steep fall in the market price of PTL shares.
Interestingly, the then PSIDC managing director, SS Brar had proposed on October 7, 1999, to dispose of PTL stake. It was during this time that PTL share had traded within Rs 1,505-Rs 1,540 range. It was the aftermath of PTL announcing a dividend of 250%, highest in the country in organised corporate sector.
At this time, the shares of Mahindra and Mahindra were quoted at about Rs 264 and Escorts at about Rs 65. The PTL?s Swaraj brand of tractors and farm equipment enjoyed strong brand loyalty with customers.
Officials have questioned the very wisdom of disinvesting PTL stake, as the company was considered ?jewel? of Punjab.