Punjab govt to probe into Punjab Tractors deal

Chandigarh, Mar 8 (UNI) The Punjab government will hold a vigilance inquiry into the disinvestment of Punjab Tractors Ltd, to a financial investor in wake of allegations that the move was made on a single bid basis and the process and procedure adopted were not lawful.

According to an official release, in case the facts are established during the enquiry, the Punjab government shall declare the sale as illegal and shall take back the management from the buyers.

The government has cautioned the new bidders and anyone participating in the further acquisitions shall be doing so at their own risk and responsibilities.

The financial buyers had tried to dispose of their holding at 3-4 times of the bidding price.

The company has been recently in the news as automobile major Mahindra and Mahindra had decided to bid for acquiring 43 per cent stake in Punjab Tractors from private equity investor Actis and Burman family.

Tata Motors, Ashok Leyland and Italy' SAME Deutz-Fahr are in race to pick up the 43 per cent stake, for a sum that could be over Rs 1,000 crore.

The Burman family, owner of the Dabur group, holds 14.5 per cent stake in Punjab Tractors while Actis holds 29 per cent. Life Insurance Corporation, General Insurance Corporation and IFCI collectively own 30.75 per cent stake in the enterprise.

Punjab Tractors with significant presence in North India, has a 14 per cent stake in Swaraj Mazda, 33 per cent in Swaraj Engines and 24 per cent in Swaraj Automotives.

UNI