(1) Notwithstanding anything in any agreement or in any of the other provisions of this Act or the rules made thereunder, the Collector may, after giving the borrower an opportunity to show cause, order the borrower to re-pay the loan in full or any part thereof, with interest, within such time as may be specified in the order under one or more of the following circumstances, namely ;
(i) if the borrower has furnished any false or misleading information or has suppressed any fact in obtaining the loan; or
(ii) if the borrower fails to comply with the terms and conditions under which the loan has been sanctioned; of
(iii) if the Collector is satisfied that the borrower has applied any portion of the loan for purposes other than those for which it was granted;
or
(iv) if the borrower has wilfully or by negligence caused material deterioration to the assets acquired with the loan; or
(v) if the borrower obstructs any person from entering any place or premises or making an inspection in exercise of powers conferred by or under this Act; or
(vi) if the borrower fails to furnish any information required by the sanctioning authority or the Collector; or
(vii) if the Collector considers it essential to effect immediate recovery of the loan in order to protect the interest of the State Government.
(2) An appeal shall lie to the State Government against an order passed under Sub-section (1) within such period and in such manner as may be prescribed and the decision of the State Government thereon shall be final.
Note - Under this section, the Collector is empowered to direct borrower to repay the loan in full or in part thereof with interest before the due period.
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