The National Green Tribunal.(File photo | EPS)
The National Green Tribunal.(File photo | EPS)

Green tribunal raps Punjab National Bank for extending loan to illegal industrial unit

The bank submitted that it has provided financial assistance of Rs 2.5 crore under the mortgage of the property.

NEW DELHI: The National Green Tribunal (NGT) pulled up Punjab National Bank (PNB) for providing financial assistance of Rs 2.5 crore to an illegal industry, which was operating in a residential area of Chanakya Place area of the city.

The tribunal bench of Justice Sudhir Agarwal and Expert Member Dr A. Senthil Vel noted that the bank without making any proper enquiry into the matter allowed a loan to the person who carried out the illegal industrial activity. 

Rejecting the bank’s request to unseal the prohibited property, the green court held that the bank “encouraged and helped” a person to “continue to commit a breach of law” in a premise which was not permissible.

“..no question arises for us to pass any order of de-sealing at the request of the bank who is guilty of providing financial assistance for carrying out illegal activity in a residential premise which was not permissible in law,” the NGT said in its order.

The background of the order is related to a complaint of the Chanakya Place Residents Welfare Association which sought the closure of several industrial units being operated without environmental clearance in residential colonies like Chanakyapuri Phase-I, Phase-II and Sitapuri of West Delhi.  

The bank submitted that it has provided financial assistance of Rs 2.5 crore under the mortgage of the property. Now the bank for the realization of dues has sold it to auction purchaser Ram Singh Fogat 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.

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