(1) Where, before or after the commencement of this Act, any property has been taken as security towards any aid granted under this Act, then, notwithstanding anything to the contrary in any other law for the time being in force, or in the deed of transfer or other document relating to the property, such property shall not be transferred without the written permission of the Government or Director as the case may be, (hereafter in this section and section 10 referred to as the sanctioning authority).
(2) The sanctioning authority may, in its discretion, by order, permit the transfer or any such property, after satisfying itself that the property remaining, after such transfer, as security for the aid, is sufficient to secure the proper repayment of the outstanding loan due to the Government under this Act together with interest chargeable thereon and the costs, if any, incurred and that the transfer is in furtherance of the purposes for which the aid was granted and the assets resulting from the transfer are to be wholly utilised in furtherance of the said purposes.
Explanation.- When granting permission under this sub-section, the sanctioning authority may impose such condition as it may deem fit to ensure that the assets resulting from the transfer are wholly utilised in furtherance of the purpose for which the aid was granted, but a contravention of any such condition imposed on the transfer or shall not invalidate the transfer.
(3) Where any such property is transferred without such permission the transfer shall be null and void.
Prohibition of transfer of property without permission of the sanctioning authority.
[Act No.53 of 1976] 9