: The Madras High Court bench here has ordered notice to the Madurai administration, the Madurai Corporation, the Lead District Bank and four other banks, on a writ filed by the Komasupalayam Residents Welfare Association.

In his petition, M. Muthukumar, the president of the association, claimed that the Canara Bank, the State Bank of India, the Indian Overseas Bank and the Indian Bank refused to disburse loans to the residents of Komasupalayam to construct houses.

The Corporation had provided Rs 1 lakh to the 220 families to construct concrete houses under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) scheme.

The residents demolished their houses which had asbestos sheets for ceilings after the Corporation promised to provide Rs 2 lakh for construction of concrete houses, Mr Muthukumar said.

The Corporation, in three installments, deposited Rs 1 lakh into the accounts of the residents who had opened accounts in the Canara Bank, the State Bank of India, the Indian Overseas Bank and the Indian Bank.

The amount was deposited in the accounts before August 30, 2010.

The Corporation officials promised that the remaining amount would be disbursed as loan by the Lead District Bank, with the assistance of the four banks, the petitioner claimed.

However, the banks refused to disburse loans to the residents. The banks agreed to provide only Rs 50,000 as loan, Mr Muthukumar further said. According to him, a meeting headed by the district collector was held on December 24, 2010 and the banks agreed to get clearance for the higher authorities and disburse Rs 1 lakh loan to the residents.

But no action was taken, he said. Therefore, he sought the intervention of the court to direct the banks to disburse Rs 1 lakh loan to the residents.

The 220 families, having demolished their houses relying on the benefits of the scheme are living in rented houses and a few of them are living in the streets, the petitioner claimed.

Without receiving Rs 2 lakh, promised by the Corporation, the residents are unable to complete the construction of their houses, he added.

Justice K.K. Sasidharan, on Friday, heard the contentions of the petitioner’s counsel T. Lajapathi Roy and ordered notice to the respondents.