LAHORE, Feb 13: The controversy over the registration of the Punjab University’s new employees housing society has deepened following the administration’s refusal to liquidate the private limited company under which it was registered.

The PU had acquired about 2,318 kanal on Raiwind Road from the Punjab Cooperative Board of Liquidation for the purpose in 2002 from the employees’ fund and a Rs240 million loan from a commercial bank.

The varsity administration had got it registered in September last year under the Companies Ordinance 1984 after forming a PU Housing Society (Private) Ltd Company for what its officials say to maintain full control of its affairs.

Following a strong criticism from both teaching and non-teaching staff, the administration in November last year had constituted a nine-member committee, comprising representatives of teachers and administration, to resolve the issue.

Since its formation, sources said the committee could not come up with a solution acceptable to both teachers and the administration.

However, in its last meeting held recently the administration agreed to register the society under the cooperative laws but it refused to liquidate the PU Housing Society Private (Ltd) Company.

The sources said the administration was interested to launch other housing projects in the country under the private company that was why it was reluctant to liquidate it.

Under the Memorandum of Association of the company, it can create and retain a pool of developed plots in appropriate non-university residential schemes, establish a development fund to purchase new sites anywhere in Pakistan for residential schemes as also to construct and administer them in an efficient and business-like manner. It can generate financial resources from borrowing from bank and financial institutions. It can also seek grants, donations and assistance from the government and non-government institutions.

The teachers and most of the committee members want the company’s immediate liquidation because vice-chancellor Arshad Mahmood has the controlling rights over the affairs of the company with 91 per cent shareholding status. Mr Mahmood has been issued 100 shares out of a total subscribed shares of 110 of the company as an individual and not in his capacity as VC of the varsity.

The other share holders are the Institute of Chemical Engineering and Technology’s head Prof Arif Butt and PU Academic Staff Association’s former president Prof Khwaja Haris Rashid, who have been issued five shares each in their individual capacities.