PNB sanctioned Rs.250 crore loan to a person doing commercial activity in a residential area, NGT seals the property

- Advertisement -
👉 Join our whatsapp group and get instant news updates

NGT: The National Green Tribunal has rejected a petition of the Punjab National Bank requesting it for de-sealing its secured property. The NGT said that the bank was guilty of providing financial assistance to a person illegally carrying out commercial activities in a residential area.

The tribunal was hearing the bank’s petition, according to which the PNB had earlier sanctioned a loan of Rs 250 crore to a person by creating an equitable mortgage of the property in Chanakya Place here, and for the realisation of the dues, it had auctioned the collateral property to another person. The purchaser would ensure that no illegal activities are carried in the said premises, the bank said seeking the tribunal’s directions for de-sealing.

What NGT said?

A bench of Judicial Member Justice Sudhir Agarwal and Expert Member A Senthil Vel noted that the tribunal had in a 2018 order directed the Delhi Chief Secretary to close the illegally operating commercial units like factories, workshops and industrial units in residential colonies, including those in Chanakyapuri Phase I, Phase II and Sitapuri of West Delhi. Pursuant to the order, the said premises in Chanakya Place was reportedly found running commercial or industrial activity in a residential area and was thus sealed, the bench noted.

- Advertisement -
'' …The fact remains that the activities in question were not permissible on the premises in question and therefore, the premises was rightly sealed. That being so, no question arises for us to pass any order of de-sealing at the request of the bank, which is guilty of providing financial assistance for carrying out illegal activity in residential premises…,'' the bench said, rejecting the plea.

The green panel said before providing financial assistance, the bank did not verify whether the commercial activity in the said premises was legal and therefore ”encouraged and helped” a person committing a breach of law by undertaking industrial activity in a residential premises.

“Hence, per se, it (PNB) is also on abettor of a crime in question, responsible for the continuance of illegal activities on premises in question. In fact, the bank also ought to have been proceeded by the authority concerned for such illegal activity,” the tribunal said.

Latest Updates

- Advertisement -

Share this article...

Comments

More News...

Latest

ED arrests Husband of Senior IPS Officer in Rs 263 Crore Fraud Case

Enforcement Directorate Arrests Husband of Senior IPS Officer in Rs 263 Crore Income Tax Refund Fraud Case

Retirement Planning: Invest Rs.3500 in NPS per month and get Rs.40,000 pension

Retirement Planning: Invest Rs.3500 in NPS per month and get Rs.40,000 pension

RBI infuses Rs 7.75 trillion via VRR

RBI Conducts Repo Auction to Address Rising Liquidity Deficit

SBI changes Loan Rules, Customers will have to pay more for Loan

SBI changes Loan Rules, Customers will have to pay more for Loan

Rules changed for Public Sector Enterprises, Now Finance Minister will grade CPSEs

Rules changed for Public Sector Enterprises, Now Finance Minister will grade CPSEs

Meet Priyanka Gupta who left her corporate job to fulfill her passion

Meet Priyanka Gupta who left her corporate job to fulfill her passion

Female Cashier handling all work of Branch alone, Huge staff shortage in Bank

Female Cashier handling all work of Branch alone, Huge staff shortage in Bank

Tata Power looking for $1 Billion Loan for new projects

Tata Power Plans to Raise $1 Billion for Clean Energy Projects in India

Google invests $350 Million in Flipkart

Google Invests $350 Million in Flipkart, Boosting Indian E-commerce Startup

Make in India! Google will start Manufacturing Pixel Smartphones in India

Google to Manufacture Pixel Smartphones and Drones in India

Latest News