(1) Notwithstanding anything contained in any law for the time being in force, an agriculturist who has availed himself of financial assistance from a bank by creating a charge or mortgage on land or interest therein shall not, after he had availed of such assistance and so long as such assistance continues to be outstanding, enter into an aggreement of sale of the land, without prior permission in writing of that bank.
(2) Any agreement of sale entered into, in contravention of sub-section (1) shall be void and unenforceable.
(3) Notwithstanding the lease of the land which is subject to the charge or mortgage in favour of the bank, or lease of any interest therein or creation of any tenancy rights on such land the land shall continue to be subject to such charge or the mortgage :
Provided that where the lessee of land or interest therein becomes occupant of such land such occupant shall hold the land subject to the charge or mortgage created by the lessor in favour of the bank except in the case where the amount of loan given by the bank to the lessor is misused by the lessor.
(4) The question whether the amount of loan granted by the bank to the lessor is misused or not shall be inquired into and decided upon by an officer authorized by the State Government in this behalf and any decision by such officer shall, subject to an appeal if any made to the State Government in such manner and within such time as may be prescribed, be final.
XVI of 1908.
XVI of 1908.
Exemption from registration of charge or mortgage in favour of bank.
Noting of charge or mortgage created in favour of bank in Record of Rights.
Restrictions on sale of land by agriculturist borrower.
The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979.
8 of 13
CHAPTER IV.
ARRANGEMENTS FOR RECOVERY OF DUES BY BANKS FROM AGRICULTURISTS.