Noida CEO told to provide alternative sites to banks

The Supreme Court (SC) on Monday gave six weeks’ time to the Noida Authority CEO to provide alternate sites to banks, which in accordance with the court's verdict have to stop operating from residential areas in NCR.

The Supreme Court (SC) on Monday gave six weeks’ time to the Noida Authority CEO to provide alternate sites to banks, which in accordance with the court's verdict have to stop operating from residential areas in NCR.

HT Image

A bench headed by Justice Swatanter Kumar granted the time following the CEO's personal appearance, which was in response to an intervention application filed by 19 banks aggrieved by the court's December 5, 2011, judgement. The verdict had ordered the closure of banks and nursing homes operating from residential premises in Noida.

The court has directed the CEO to identify alternative sites near residential areas in two weeks and complete the allotment process in the next four weeks. It has also sought a status report from the CEO on the compliance of its December 2011 verdict.

Through its judgment, the SC had upheld the Noida Authority's notice to a landlord who had sub-let part of his property to a bank. The court had given two months' time to banks and nursing homes to relocate.

In the latest application, 19 banks have stated that they should have been heard before the verdict was announced. They feel the time slated for relocation is not sufficient. The banks have stated that there are more than 6,000 locker owners and around 1.5 lakh account holders in the region. Some banks also claimed not to have received the authority's notice.

"Banking, nursing homes or any other commercial activity is not permitted in Sector 19 and for that matter, in any sector, in the development area earmarked for 'residential use'," the bench had said in its December 2011 order.

The court had clarified that failure to comply with the order would result in sealing of premises and cancellation of leaseholds.