SAD alleges Punjab govt plans ₹350 crore arranger fee for ₹25,000 crore loans

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SAD alleges Punjab govt plans ₹350 crore arranger fee for ₹25,000 crore loans

Synopsis

Shiromani Akali Dal has levelled a pointed financial allegation against the AAP government in Punjab — that it plans to pay ₹350 crore as an 'arranger fee' to raise ₹25,000 crore in loans through GMADA and PSPCL, a move the opposition calls an indirect diversion of public funds. With Punjab's debt allegedly at ₹4.5 lakh crore, the charge adds fresh political heat to an already embattled Mann administration.

Key Takeaways

SAD leader Daljit Singh Cheema alleged on 23 August that the Punjab AAP government plans to pay a ₹350 crore 'arranger fee' for loans worth ₹25,000 crore .
The loans are to be raised through GMADA and PSPCL , according to the allegation.
Cheema claimed the fee is a mechanism to allegedly divert public funds for AAP's expansion in other states.
He alleged Punjab's total debt has risen to approximately ₹4.5 lakh crore , placing a burden of around ₹1.5 lakh on every Punjabi.
Cheema also raised allegations involving a court petition accusing members of CM Bhagwant Mann's family of demanding ₹5 crore to settle a rape case; the High Court and NHRC have reportedly sought a state response.
The AAP government had not formally responded to the allegations at the time of publication.

Shiromani Akali Dal (SAD) leader Daljit Singh Cheema on Sunday, 23 August alleged that the Bhagwant Mann-led Aam Aadmi Party (AAP) government in Punjab was planning to pay a ₹350 crore 'arranger fee' to raise loans worth ₹25,000 crore through two state bodies — the Greater Mohali Area Development Authority (GMADA) and Punjab State Power Corporation Limited (PSPCL). Cheema described the fee as a 'direct loot of the state exchequer.'

What the Allegation Claims

Speaking to the media at Anandpur Sahib, the former Education Minister alleged that the 'arranger fee' was not a legitimate transaction but a mechanism to allegedly divert public funds for the Aam Aadmi Party's expansion activities in other states. He claimed that no state government in India had previously been known to pay such a fee for raising loans.

Cheema expressed surprise that the Punjab government felt the need to engage an intermediary to present its case before banks, particularly given the presence of senior officers including Chief Secretary K.A.P. Sinha. 'Despite Punjab having highly capable officers, the government chose to pay ₹350 crore for a task its own bureaucracy can perform,' he said.

Punjab's Debt Burden Under Scrutiny

The SAD leader alleged that the AAP government had pushed Punjab's total debt burden to approximately ₹4.5 lakh crore, adding that every Punjabi now carries an individual debt burden of around ₹1.5 lakh. These figures, attributed to Cheema, could not be independently verified at the time of reporting.

This comes amid broader opposition scrutiny of Punjab's fiscal management under the AAP administration, which came to power in early 2022 on a platform of financial reform and anti-corruption governance.

Congress and 1984 Riot Cases

Cheema also used the press conference to target the Indian National Congress over the projected rehabilitation of Sajjan Kumar, a Congress leader linked to the 1984 Sikh riot cases. He called the episode a 'drama,' noting a contradiction between the party's national leadership projecting Kumar as a hero and local Punjab Congress leaders opposing the move.

He demanded that Congress leaders take a clear public stand against Jagdish Tytler and Kamal Nath as well, and called on the party high command to expel all leaders implicated in the 1984 cases. He alleged that Congress leaders were making different statements in Punjab and Haryana ahead of elections, while the national leadership remained silent.

Allegations Against Chief Minister's Family

Cheema also raised what he described as a serious matter allegedly involving the family of Chief Minister Bhagwant Mann. He alleged that a petition filed in court contained accusations that ₹5 crore had been demanded by members and relatives of Mann's family to settle a rape case. He stated that both the High Court and the National Human Rights Commission (NHRC) had sought a response from the state government on the matter. NationPress could not independently verify these allegations.

Recruitment Irregularities Alleged

On the issue of government recruitment, Cheema alleged that none of the state government's hiring processes was being completed in a transparent or proper manner. He cited repeated complaints of scams, paper leaks, and cheating, noting that courts had imposed stays in several cases. He further alleged that candidates from outside Punjab were being given state government jobs through improper means.

The AAP government in Punjab had not issued a formal response to these allegations at the time of publication. With Punjab politics heating up ahead of the next electoral cycle, opposition pressure on the Mann administration is expected to intensify.

Point of View

Congress contradictions, and personal allegations against the Chief Minister's family — all bundled into one sitting. The 'arranger fee' charge is the most consequential if substantiated: paying ₹350 crore to intermediaries when a capable bureaucracy exists would be a significant governance failure. But opposition allegations in Punjab have a history of remaining unverified, and the AAP government's silence so far neither confirms nor refutes the charge. The real test is whether any formal inquiry follows, or whether this joins the long list of press-conference allegations that fade without institutional scrutiny.
NationPress
24 Aug 2026

Frequently Asked Questions

What is the ₹350 crore 'arranger fee' allegation against the Punjab government?
Shiromani Akali Dal leader Daljit Singh Cheema alleged on 23 August that the AAP government in Punjab plans to pay ₹350 crore as an 'arranger fee' to an intermediary for raising loans worth ₹25,000 crore through GMADA and PSPCL. He called it a 'direct loot of the state exchequer' and claimed no state government had previously paid such a fee for loan arrangements.
What is Punjab's current debt burden according to the SAD?
According to Daljit Singh Cheema, the AAP government has pushed Punjab's total debt to approximately ₹4.5 lakh crore, translating to an individual burden of around ₹1.5 lakh per Punjabi. These figures are attributed to the SAD leader and have not been independently verified.
What did Cheema allege about Chief Minister Bhagwant Mann's family?
Cheema alleged that a court petition accused members and relatives of CM Bhagwant Mann's family of demanding ₹5 crore to settle a rape case. He stated that both the High Court and the National Human Rights Commission had sought a response from the Punjab government on the matter. NationPress could not independently verify the allegation.
What did the SAD say about Congress and the 1984 Sikh riot cases?
Cheema called out what he described as a contradiction in the Congress party's stance, with the national leadership projecting Sajjan Kumar — linked to 1984 Sikh riot cases — as a hero while local Punjab leaders opposed him. He demanded that Congress also publicly oppose Jagdish Tytler and Kamal Nath, and called for their expulsion from the party.
Has the AAP government in Punjab responded to these allegations?
The AAP government in Punjab had not issued a formal response to Cheema's allegations at the time of publication. The charges were made at a press conference in Anandpur Sahib and span fiscal management, family conduct, and recruitment irregularities.
Nation Press
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