PNB Seeks Possession of Universal Group of Institutions Campus Over Rs 77.29 Crore Unpaid Loan
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Punjab National Bank (PNB) has approached the court of the Chief Judicial Magistrate in Mohali seeking physical possession of the Universal Group of Institutions campus in Ballopur village, Lalru, over an unpaid loan of Rs 77.29 crore. The loan has remained in default since 2021, and the next hearing in the case is scheduled for October 30. The bank has filed an application under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, seeking possession of 12 properties mortgaged by the Universal Educational Society, which operates the campus.
The properties include nearly 68 bighas and 14 biswas of common land belonging to the Ballopur gram panchayat. According to panchayat department records, the land was leased to the society in 2009 for a period of 33 years. PNB has requested the court to appoint a tehsildar or an advocate commissioner, with police assistance if required, to take physical possession of the mortgaged properties and hand them over to the bank’s authorised officer.
According to PNB’s application, the total outstanding amount stood at Rs 77.29 crore as of July 31, 2026. The dues arose from a loan of Rs 38 crore sanctioned in 2017. The bank classified the loan account as a non-performing asset (NPA) on December 15, 2021, after the borrower failed to repay the dues as required. PNB approached the Debt Recovery Tribunal (DRT) in Chandigarh in January 2023 before initiating proceedings under the SARFAESI Act in the Mohali court to recover the outstanding amount.
Meanwhile, the Enforcement Directorate (ED) has started an inquiry under the Prevention of Money Laundering Act (PMLA) into the alleged fraudulent use of panchayat land as collateral for a loan linked to the society’s Rs 42.2-crore loan account. The ED’s Jalandhar zonal office has sought detailed records from PNB, including original account-opening forms, bank statements from the beginning of the account, loan sanction documents, collateral security papers and audit reports. The agency is examining the financial transactions and the circumstances under which the land was allegedly used to secure the loan.
The matter came under scrutiny after complainant Resham Singh approached the Vigilance Bureau earlier this year. A subsequent inquiry by the District Development and Panchayat Officer (DDPO) reportedly found irregularities in the conditions of the 2009 lease deed and raised questions about how public land could be pledged to secure private bank credit. The inquiry also highlighted the alleged involvement of former sarpanch Chhoti Devi and Universal Educational Society president Gurpreet Singh.
Following the DDPO’s complaint, police registered an FIR at Dera Bassi police station in June. Gurpreet Singh, Chhoti Devi and two former panchayat members were booked on charges including cheating, forgery and criminal conspiracy. Police have also initiated efforts to locate Gurpreet Singh as part of the investigation. A local court has separately summoned the original mortgage records from PNB to examine the documents connected with the disputed land and loan.
The investigation has focused on an allegation that a clause allowing the leased panchayat land to be used for obtaining loans was inserted into the 2009 lease deed. Investigators are examining whether the clause was valid and whether the land was lawfully mortgaged to the bank. The allegations relate to the use of public land to obtain private bank credit, and the findings could have implications for the recovery proceedings and the criminal investigation.
In a separate development, the Punjab and Haryana High Court stayed the Punjab government’s order cancelling the recognition of Universal College in July. The stay will remain in place until the next hearing, scheduled for November 4. The legal proceedings concerning the college’s recognition are separate from PNB’s loan recovery case, although both are connected to the wider controversy surrounding the institution.
The allegations against the society’s office-bearers and former panchayat representatives have not yet been proved in court. The society’s president has previously denied any wrongdoing. PNB’s possession application, the ED’s inquiry and the police investigation are continuing through separate legal processes to establish the facts and determine responsibility.
