Delhi HC slams ridge management panel for parking ₹223 crore funds in FDs

Delhi High Court criticized the Ridge Management Board for parking ₹223 crore in fixed deposits instead of funding urgent conservation of the Delhi Ridge.

The Delhi High Court has expressed displeasure over the Ridge Management Board’s decision to park approximately ₹223 crore – meant for the protection and management of the Delhi Ridge – in fixed deposits instead of utilising the funds for conservation.

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A bench of justice Jasmeet Singh observed that the Ridge, which serves as the “lungs” of Delhi, requires urgent and extensive upgradation, and funds allocated for the purpose must be effectively utilised.

The court in its March 25 order, directed counsel for the Delhi government, Sanjay Jain, to convene an emergency meeting of the RMB to formulate a plan for utilising available funds for preservation, upgradation, and conservation.

“A matter of grave concern in the present case is that the RMB, entrusted with the maintenance, upgradation, and proper management of the Ridge, has deposited a sum of ₹223 crore in a fixed deposit for a period of one year, which prima facie indicates that the funds were not utilised for their intended purpose, namely the development of the Ridge,” the court said.

The court noted that the Ridge requires urgent and extensive upgradation, and funds earmarked for this purpose must be duly and effectively utilised for conservation, upgradation, and preservation.

The court passed the order while hearing a petition filed by the Delhi Forest Department in 2024 seeking directions to Bank of Baroda to transfer ₹223 crore invested by the RMB with the bank in March 2021.

In the present case, the RMB, constituted in compliance with Supreme Court directions for eco-restoration, submitted that it had parked ₹223 crore in 113 fixed deposits in March 2021. It alleged that bank officials had misappropriated funds and dishonestly transferred approximately ₹70 crore.

The bank’s lawyer Kush Sharma opposed the petition, asserting that the same was done in collusion with RMB officers and said that ₹214.18 crore, including some amounts pertaining to the Delhi Urban Shelter Improvement Board (DUSIB), was available with its client.

The court directed the bank to remit ₹1,52,75,08,000, along with up-to-date accrued interest, to the account of the high court’s registrar general within two weeks.

“The fact of the matter is that ₹1,52,75,08,000 belongs to the RMB and needs to be deposited. Since the petitioner is the lawful owner of the amount and does not want the amount to be kept deposited with the Bank of Baroda any further, it is directed that the amount along with up-to-date accrued interest be remitted to the account of the registrar general, Delhi High Court within two weeks from today,” the court said.