Noida landlords up ante, ask banks to vacate by Jan 10 | india | Hindustan Times
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Noida landlords up ante, ask banks to vacate by Jan 10

In a move that could hit thousands of account-holders, landlords, who have let out their residential premises to various private and public sector banks in Noida, have told them to shut operations by January 10. Office-bearers of the Noida bank premises' owners association (NBPOA), an umbrella body of all landlords, on Tuesday said they had issued the deadline to save their property.

india Updated: Dec 28, 2011 01:13 IST
Darpan Singh/Kapil Datta

In a move that could hit thousands of account-holders, landlords, who have let out their residential premises to various private and public sector banks in Noida, have told them to shut operations by January 10. Office-bearers of the Noida bank premises' owners association (NBPOA), an umbrella body of all landlords, on Tuesday said they had issued the deadline to save their property.

The SC on December 4 ruled banks, nursing homes and other commercial establishments must move out of residential premises in two months, failing which plot allotment agreements would be cancelled.

Meanwhile, 17 branches of the State Bank of India have moved the Supreme Court, requesting a status quo. In case this doesn't happen, the SBI has asked the authority to provide alternative sites. As many as 34 branches of other banks have also decided to move court with similar petitions. The landlords have upped the ante in the wake of the authority having failed to come up with a concrete relocation plan even three weeks after the court order.

"We have to respect the court order. Let the account holders suffer. We are informing the district administration about our closure notices," said Rohit Sapra of NBPOA. "We have decided on January 10 because we will need 20 days to put our properties back to residential use in line with the order," he said.

The association said only about a 100 banks had been operating out of residential premises, while thousands of shops, showrooms and other commercial units had been allowed to operate in violation of the court order. "Banks are for public utility. We have asked the Noida authority to shut shops and other commercial activities first," said Sapra.

The association demanded the authority should change land use in public interest and regularise the operation of banks. "If we don't comply with the court order, our lease deeds will be cancelled. Banks have been directed by the court to apply to the authority for alternative sites. The court has also directed the authority to allot required space in tow months," Sapra said.

The authority has two options -- using vacant commercial plots and increasing FAR in some markets. But both options are looking not very viable now. Banks prefer ready-to-move-in property.