HC refuses to vacate stay govt’s move to raise loans for MC

The court had also issued notices to the Punjab Infrastructure Development Board and Punjab Municipal Infrastructure Development Company. Directions were passed over a PIL filed by Sunita Rinku and other residents of Jalandhar.

Contending on behalf of the petitioner,Advocate D S Patwalia had contended that the act of the Punjab government was totally unconstitutional,arbitrary and contrary to provisions laid down in law. Patwalia had sought directions for restraining the state from taking over public utility properties of various Punjab MCs,which are institutions of self-governments and protected under the Constitution. On Tuesday,the Punjab government had sought a hearing for the case which was turned down by the high court.

Patwalia had averred that the state is taking over public utility properties so that loans can be raised from banks/financial institutions by mortgaging the said properties as collateral securities and in turn,raise resources for Punjab Municipal Infrastructure Development Company. The petitioner had also sought directions to restrain the state from directing the MCs to hand over public properties of state MCs to Punjab.