NGT rejects PNB plea seeking de-sealing of its secured property

New Delhi [India], March 10 (ANI): The National Green Tribunal (NGT) has recently denied a plea for de-sealing of Punjab National Bank (PNB) secured against loan property, noting that the loan was granted to carry out illegal commercial activity in Chanakya Place area in New Delhi.
The PNB granted a loan of Rs 2.5 crore in July 2012.
The said premises were sealed in 2018 on the order of the Tribunal.
The bench headed by Justice Sudhir Agarwal said that the activities in question were not permissible on the premises and therefore, the premises were "rightly" sealed.
"That being so, no question arises for us to pass any order of de-sealing at the request of the bank that is guilty of providing financial assistance for carrying out illegal activity on residential premises which were not permissible in law," the bench said.
The tribunal also said that the bank encouraged and helped while providing financial assistance to a person to continue to commit a breach of law by undertaking industrial activity in a premise which was not permissible in such premises.
"Hence, it is also an abettor of a crime in question, responsible for the continuance of illegal activities in premises in question," it observed.
"In fact, the Bank also ought to have been proceeded by concerned authority for such illegal activity," the bench said.
The NGT noted that before giving financial assistance to the proponent the bank did not verify that it was not undertaking any activity on the premises in question which was not permissible by law.
"In fact, the bank without making any proper enquiry into this aspect as to whether the activity being carried out by the proponent was permissible activity in the area and premises in which the same was carried out, advanced loan and therefore, in fact, provided finance to the person who was carrying out commercial or industrial activities in residential premises which were not permissible in law," the bench said in the order passed on March 3.
A plea was filed by Chanakya Place Residents Welfare Association complaining that several factories, workshops and industries are located in residential colonies such as Chanakyapuri Phase-I, Phase-II and Sitapuri of West Delhi which is functioning without seeking any prior Environmental Clearance (EC) or in violation of conditions prescribed in EC and the request was made that such illegally operating units be directed to be closed.
The PNB had filed a plea stating that the bank provided financial assistance to the proponent on July 27 in 2012 sanctioning a total loan of Rs. 2.50 crore by the creation of an equitable mortgage of the property in question in Chanakya Place, New Delhi.
Now the bank for the realization of dues has sold it to an auction purchaser who has ensured that he will not carry out any illegal activity on the premises.
Therefore, the bank has requested that the premises in question be directed to be de-sealed, it stated. (ANI)