Acquisition of Accommodation on Lease / Rental basis by Commercial Banks for their use (i.e. for Office and Residence of Staff)


Do you remember the famous Supreme Court Order dt 05/12/2011, on NOIDA’s Sector 19? Sector 19 has been exclusively designated for residential usage only. However, over the years, many commercial establishments have started to operate from NOIDA.

The legality of NOIDA development authority to permit mixed-use in Sector 19 was challenged in the court.

The most prominent case is of the R.K. MITTAL & ORS. Vs. STATE OF U.P. & ORS.

In brief the above SC judgment, said that Banks, Hospitals and any other commercial activities cannot be carried out from Plots specially reserved for residential purpose.

Specific mention of 21 banks was mentioned which were ordered to immediately close their operations.

After the Order, there were many difficulties, which had to be addressed by many authorities.

To avoid such occurrences in future, RBI today issued a clarification on Acquisition of Accommodation on Lease / Rental basis by Commercial Banks for their use (i.e. for Office and Residence of Staff)

The clarification is aimed to ensure that Banks adhere to all Legal rules, in the process of acquisition of Accommodation on Lease / Rental basis by Commercial Banks for both Office and Residence of Staff.

Trust with the said clarification, inconvenience to the general public will be minimized. Yes, there is issue of reputation risk of the respective banks too.

 

Re-disseminated by Prashant N. Banker by daytime, blogger by night.

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