Supreme Court bars banking services from Noida Residential Plots

Residents left  high and dry as over 100 branches take a hit.

Neighborhood banks, public and private sector alike, face closure as per the latest Supreme Court Ruling.

The SC has directed that banks functioning from residential plots in Noida must shift to commercial plots within the next two month, and that the nursing homes on residential plots must also shift to commercial areas, adding that in accordance with the Authority’s bylaws, one can only use 30 per cent of the total ground floor area of one’s own residential property for private purposes like clinics, offices, etc.

While most residents seem concerned as this ruling will cause commercial establishments to move away from proximity, others have welcomed the change, saying it will make the area more secure, and free from congestion.

As per the Noida Authority’s records, there are about 127 branches of several banks in residential and industrial areas of the city and about 80 per cent are currently operating unlawfully on residential plots.

“The Authority had earlier served notices to owners because, after acquiring the leasehold rights over their respective plots, they had rented out a portion of their residential premises to either a bank or a nursing home. However, instead of putting an end to the illegality, they approached the court.The court order now reaffirms that commercial activity will not be allowed on residential plots” says Rajpal Kaushik, chief town planner, Noida Authority.

“Even though the bank branches have violated the law, the Authority must keep in mind that Noida has so many industries that are dependent on them. Shutting down of banking services due to the shifting will have an adverse affect on the industries ,” said Vipin Malhan, president , Noida Entrepreneurs’ Association.

Failure to comply with the direction would invite sealing of the offending banks, nursing homes and commercial establishments operating from residential areas in breach of Noida Master Plan 2001, the bench warned.

Apart from Noida administration, it cast an equal responsibility on plot owners to ensure that banks, nursing homes and other offices shut shop immediately and shift to “commercial, commercial pockets in industrial/institutional area and specified pockets for commercial use within the residential sector, earmarked for the activity in the development plan, regulation and provisions of the law”.