Days after the Enforcement Directorate (ED) started an investigation into the “questionable” allotment of a commercial plot at Focal Point, Mohali, by the Punjab Small Industries and Export Corporation (PSIEC) to a Patiala-based entity, the Board of Directors of the corporation decided to set up a fact-finding inquiry committee comprising officers from other departments.The ED, during search operations at the PSIEC office between August 4 and 6, had alleged that the terms and conditions for the allotment of 2.112-acre plot for Rs 33.33 crore to Iconic Space Creators, were changed from those mentioned in the rules during the auction process to benefit the allottee. The ED had also said that one of the partners of the company had purchased a fancy vehicle registration number that was being used by the Executive Director of the corporation.The issue relates to the allotment of this site to the company in 2020 at Rs 32,600 per square yard, which was allegedly far below the historic prices of plots in its vicinity. “In 2005, a plot in the vicinity was allotted for Rs 60,000 per square yard. How could a commercial site be allotted for a much lower amount, 15 years after nearby sites were sold at nearly double the price?” asked an official in PSIEC when contacted by The Tribune. As the issue snowballed into a controversy, the government moved to cancel the plot allotment in 2023. The matter is presently under arbitration, and the allottee has so far paid just Rs 4.99 crore.The PSIEC board met on August 14, minutes of which are in the possession of The Tribune, where a decision to set up the fact-finding committee was taken. The meeting was held just 10 days after the ED searches. Interestingly, when this case was being discussed, and as recorded in the minutes of the meeting, all PSIEC officers who had dealt with the plot allotment were asked to recuse themselves from the discussion. It was only after their departure that the matter was taken up for further discussion.The terms of allotment were changed after the site was allotted, a fact also admitted by the board at its meeting. It is learnt that the complete record of the site allotment was placed before the board.“It was found that no proper site visit was undertaken or feasibility report was prepared before putting the site up for e-auction. The site was allotted on an ‘as is where is’ basis, and a small building portion, DG set, pump chamber and tubewell were already present at the site, meaning it was not free from encumbrances. It was specifically mentioned in the allotment letter that the PSIEC would not be responsible for levelling the site or removing the structures. ‘Few terms of the allotment letter were altered … without the consent of the competent authority,’” admitted the board members, as per the minutes of the meeting. Officials said the removal of these encumbrances became the liability of the PSIEC.Dalvir Singh, Chairperson, PSIEC, told The Tribune that there were irregularities in the allotment of the site and the conditions of allotment were changed afterwards to extend undue benefits to the allottee.“Though the plot was allotted after inviting bids in an e-auction, the board felt there were several discrepancies. It was thus decided to set up a fact-finding committee to not just fix the responsibility of the officers involved but also suggest measures to be taken in future to safeguard the financial interests of the Corporation,” he said.