Eighteen nationalised and private banks operating in residential and institutional areas of Noida have been asked to explain why they should not be sealed after they failed to shift to alternate sites.
Passing an order to this effect on Friday, the Supreme Court directed defaulting banks to give responses within a week, following which the court would take a call.
It was pursuant to the December 5, 2011 order of the apex court that action was initiated against banks and nursing homes in Noida for violating the Master Plan that does not permit commercialisation of residential plots. For the convenience of citizens, the Court granted sufficient time for the banks to shift to alternate sites to be provided by the Noida authority.
In its recent affidavit, Noida authority informed the Court that despite repeated reminders, 18 banks were still running from unapproved locations which are neither allotees of commercial plots nor have they informed of any plans to shift to alternate sites. The list included four residential plots housing three State Bank of India branches and a Union Bank of India branch.
The remaining branches operated by Central Bank, Oriental Bank of Commerce, Indian Overseas Bank, Punjab National Bank and Canara Bank among others were found operating illegally from institutional and industrial plots.
Granting two weeks for the defaulting banks to put in their response, the bench said: “Issue notices to all banks listed in Annexure as to why they not be ordered to be sealed.”
Senior advocate Mukul Rohatgi, who represented some banks, informed the Court that while the residential plots have largely been cleared, the Noida authority must reconsider on letting banks to function in industrial and institutional plots.