Banks banned in Noida residential areas

New Delhi: Pulling up the New Okhla Development Authority (Noida) for exercising its powers arbitrarily, the Supreme Court on Monday ordered the immediate closure of 21 banks and nursing homes operating in sector-19 and then expanded the ambit of its verdict to banning any further commercial activity — wholly or partially — in exclusive residential zones in the Noida development area.

A judgment passed by a bench of Justices Swatanter Kumar and Ranjana Desai said courts can step in when mixed land use has an impact on the environment, affects the convenience of residents, or raises ecological concerns in a residential area.

The court’s verdict upholds an Allahabad High Court decision to evict occupants and tenants engaged in commercial activities in Noida’s Sector-19. The court blamed the development authority and the Uttar Pradesh government for mixed land use and commercial activity choking residential spaces in Noida, in violation of the Uttar Pradesh Industrial Area Development Act-1976.

“These flagrant violations demonstrate some instances of widespread violation of statutory provisions and somewhat arbitrary exercise of power by the development authority (Noida). Lack of adoption of a uniform application of law has resulted in a large number of cases of violation of law all over the state of Uttar Pradesh going unnoticed. The time has come for development authorities to change their style of functioning and act vigilantly and uniformly,” the court said.

“The concept of public accountability and performance of public duties in accordance with the law, and for the larger public good, are applicable to statutory bodies as well as the authorities functioning therein. We find no justification, whatsoever, for the respondents (Uttar Pradesh government and Noida) to act arbitrarily in treating equals who are similarly placed as unequals,” the court said.

With this, the court ordered the immediate closure of 21 banks and nursing homes operating in Sector-19, stating that the premises should be given out for residential use within two months of the date of pronouncement.

Nevertheless, the court allowed three kinds of professionals — doctors, lawyers and architects — to use 30 per cent of the ground floor area in their residences for running clinics and offices. “For such use, the lawyers, architects and doctors shall be liable to pay charges as may be determined by the development authority, in accordance with the law, after granting an opportunity of being heard,” it said.

In case of any violation on the part of lessee or the occupant, the development agency has been directed to seal the premises and proceed to cancel the lease deed immediately. Any existing cancellation of lease deeds shall be kept in abeyance for two months.

“Any orders in this regard will be by an officer not below the rank of Commissioner,” it said.

Source: Financial Express