SC stay on sealing of banks in Noida extended

The Supreme Court today extended till March 12 its stay on sealing of the banks operating from residential areas in NOIDA.

"There will be no sealing of the banks by the NOIDA authority till March 12," a bench comprising justices Swatanter Kumar and Ranjana Prakash Desai said, while extending its earlier order of January 23.

The bench, however, asked the chief managers of all the relevant banks, which are before it, to file their affidavits within a week giving details of the lease entered by the banks which are to be shifted to alternate site.

The banks which have been alloted new plots by the Noida authority have been asked to file their affidavit with the photo copies of the receipt issued to them by the authority.

The bench made it clear that failure to file the affidavits within the timeframe would lead to the sealing of premises by NOIDA authority.

The bench was hearing intervention applications filed by 19 banks aggrieved by the court's December 5, 2011, judgement.

The apex court had earlier ruled that banking, hospitals and other commercial activities cannot be carried out from plots in Noida developed for residential purpose and ordered 21 banks and nursing homes in Sector 19 to immediately close their operations.

"That banking or 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.

The apex court had asked 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 directive.

Source: EconomicTimes