The Maharashtra Cooperative Societies Rule 1961

Chapter X - Land Development Banks

Rule 93 to 103

Rule No 93. Procedure for Submission and consideration of applications for loans from Land Development Banks

(1) All applications for loans from a Land Development Bank shall be made in the form 1 [specified] by the State Land Development Bank with the approval of the Registrar. The form shall among other things contain a list of documents which are required to be submitted for purposes of dealing with the application.

(2) Every Land Development Bank shall keep sufficient stock of printed copies of the forms of loan applications and shall supply them to the intending borrower on payment *[of a fee of one rupee per form].

(3) Every Land Development Bank shall specify, from time to time, the name, designation and address of the officer (hereinafter in this chapter referred to as "the Receiving Officer"), who shall receive all loan applications from the intending borrowers.

1 (4) The application together with copies of necessary documents, deposit equivalent to value of one share of the Bank and fees specified below, shall be submitted by the applicant to the Receiving Officer:-
Loan Amount Fees to be paid in Rs.
Upto Upto Rs. 5,000 ... ... ... 5
Rs. 5,001 to Rs. 15,000 ... ... ... 20
Rs. 15,001 to Rs. 30,000 ... ... ... 30
Rs. 30,001 to Rs. 50,000 ... ... ... 50
Rs. 50,001 and above ... ... ... 100

(5) On receipt of an application for loan, the Receiving Officer shall put his initials on the application and mention his designation and the date of receipt of the application.

(6) After an application for loan has been received, the Receiving Officer shall verify whether it contains all the necessary particulars and is accompanied by the necessary documents. If any details are lacking, he shall get the application completed by the applicant.

(7) Each application shall be entered in the chronological order in the register of application for loans from the Land Development Bank to be maintained by the Receiving Officer and shall be dealt with in the same order.

(8) Immediately after the application is entered in the register of applications for loans from the Land Development Bank, the Receiving Officer shall forward it 1 [ 2 [to the District Deputy Registrar of Co-operative Societies or the Assistant Registrar of Co-operative Societies or Co-operation and Industries Officer or the Block Development Officer or the Assistant Block Development Officer] within whose jurisdiction the land in respect of which the application is made is situate (being the person prescribed for the purposes of subsection (1) of Section 118 of the Act, hereinafter in this chapter referred to as "the Public Enquiry Officer").] The Public Enquiry Officer shall give at least 3 [eight clear days public notice] in Form “S” calling upon all persons interested to present their objections to the loan, if any. The notice shall also be given by beat of drum and shall be affixed at the chavdi of the village or villages where the applicant resides and in the limits of which the land or lands proposed to be improved or offered as security for the loan is or are situated. A copy of the notice shall be exhibited in the head office and relevant branch office, if any, of the Land Development Bank concerned and in the office, if any, of the person giving the notice.
If any persons interested fail to appear as stated as required by the aforesaid notice, the questions at issue will be decided in their absence and such persons will have no claim whatsoever against the property for which the loan applied for will be sanctioned till such time as the loan together with interest thereon or any other dues arising out of the loan are paid in full by the loanee.

(9) The Public Enquiry Officer shall consider every objection submitted under sub- section (1) of Section 118 in the manner laid down in that section.

(10) The Public Enquiry Officer shall then forward the application within two days of their disposal to the Land Development Bank concerned. The Land Development Bank may appoint an enquiry officer (hereinafter in this chapter referred to as "the Equiry Officer") to enquire into the applications. The Enquiry Officer shall make inquiry by actually visiting the land in which the improvement is proposed to be effected and the lands and other property offered as security. He shall conduct his enquiry in accordance with the form to be [specified] by the State Land Development Bank, with the approval of the Registrar.
In case the Public Enquiry Officer is unable to forward the application within two days, he shall make a report to the Registrar, stating thereunder the reasons therefor and he shall, thereafter act in accordance with such directions as may be issued to him by the Registrar.

(11) The Enquiry Officer may make such other enquiries as may be necessary and shall value the lands according to such formulae as may be laid down by the State Land Development Bank, with the approval of the Registrar from time to time, estimate the repaying capacity of the applicant and examine the feasibility and the utility of the proposed improvement. He shall then submit his report stating what amount of loan may be granted to the applicant against what security and for what purpose and the period within which it may be recovered from him. The Enquiry Officer shall complete his inquiry within fifteen days of the date of the receipt of the application by him.
If the Enquiry Officer is unable to complete his enquiry within fifteen days, he shall' make a report to the Registrar stating therein the reasons therefor and he shall thereafter act in accordance with such directions as may be issued to him by the Registrar.

(12) After completion of the enquiry, the application together with his report shall be submitted by the Enquiry Officer to the Land Development Bank together with the following certificates:-
(a) Certificate regarding outstanding Government dues;
(b) Any other relevant certificate.

(13) On receipt of the report of the Enquiry Officer under sub-rule (12), the Land Development Bank shall satisfy itself that the inquiry has been properly conducted. If there are any deficiencies, the Bank shall get them completed immediately.

(14) The Land Development Bank may then undertake such further scrutiny as may be necessary and pass final orders within 30 days. Decision shall be communicated to the applicant within 7 days thereafter. In case the final orders are not passed within 30 days, the Bank shall make a report to the Registrar stating therein the reasons therefor and shall thereafter act in accordance with such directions as may be issued to it by the Registrar.

(15) All the applications received by the Land Development Bank shall be disposed of by the Bank within a maximum period of four months. If the Bank is unable to dispose of an application for loan within the period of four months, it shall make a report to the Registrar stating therein the reasons therefor and the Bank shall thereafter act in accordance with such directions as may be issued to it by the Registrar.

(16) In the case of rejection of applications for loans, the reasons therefor shall be communicated by the Bank to the applicant. When the loan has been sanctioned, the Bank shall lay down the terms and conditions regarding grant of the loan, regarding payment of instalments, submission of report on the progress of improvement of land and release of subsequent instalments. The applicant shall be asked by the Land Development Bank to remain present at the head office or branch office of the Bank on a date to be fixed for execution of the mortgage deed and for receiving loan or the first instalment thereof. Such date shall not ordinarily be later than 15 days from the date of communication of sanction of loan to the applicant.

(17) The applicant, while receiving the amount of the loan or the first instalment of the loan, shall purchase shares of the Bank to such extent as may be required under the by-laws of the Bank, The Land Development Bank shall issue a receipt to the applicant giving full particulars of the amounts paid by him from time to time.

(18) Failure to comply .with any time-limits specified in this rule shall not in any manner affect the validity of the sanction of the loans by a Land Development Bank or by the State Land Development Bank.

Rule No 94. Registration of copies of instruments under Section 122

Copies of instruments referred to in Section 122, duly certified by the Manager of the Land Development Bank, shall be sent by the Land Development Bank to the Registering Officer concerned within a period of three months from the date of execution of the instruments, by registered post or by hand delivery.

Rule No 95. Authority to Land Development Bank to exercise power under Section 133(1)

The authorisation for the purposes of clause (a) of the provison to subsection (1) of Section 133 shall be granted to the Land Development Bank by the Registrar after hearing the objections, if any, of the mortgagor or mortgagors concerned.

Rule No 96. Appointment of Receiver and his powers under Section 133

(1) The State Land Development Bank may, on the application of a Land Development Bank and under circumstances in which the power of sale conferred by Section 133 can be exercised, appoint any person in writing to be a Receiver of the produce and income of the mortgaged property or any part thereof and such Receiver shall be entitled either to take possession of the property or collect its produce and income, as the case may be, to retain out of any money realised by him, his expenses of management including his remuneration, if any, as fixed by the State Land Development Bank and to apply the balance in accordance with the provisions of sub-section (8) of Section 69-A of the Transfer of Property Act, 1882.

(2) A Receiver appointed under sub-rule (1) may, for sufficient cause and on application made by the mortgagor, be removed by the State Land Development Bank.

(3) A vacancy in the office of the Receiver may be filled up by the State Land Development Bank.

(4) Nothing in this rule shall empower the State Land Development Bank to appoint a Receiver where the mortgaged property is already in the possession of a Receiver appointed by a civil court.

Rule No 97. Appointment, qualifications and powers and functions of a Sale Officer under Section 133

A Land Development Bank may, from time to time, by a resolution of its committee, appoint any of its officers or any other person as a Sale Officer, with the approval of the Registrar, for the purpose of effecting sale of mortgaged property under Section 133. Such Sale Officer shall exercise the same powers and functions as are conferred upon a Recovery Officer and a Sale Officer under these rules.

Rule No 98. Procedure for distraint and sale of the produce of the mortgaged land and sale of mortgaged property

The procedure laid down in Rule 107 shall mutatis mutandis apply for the distraint and sale of the produce of the mortgaged land and the sale of mortgaged property under Sections 132 and 133:
Provided that, in the case of sale of mortgaged property, the notice of demand for the payment of the mortgage money or part thereof, as the case may be, as also the notice for the sale of the mortgaged property in the event of the payment not being made within the time allowed, shall be served upon the mortgagor or each of the mortgagors and also upon the following persons, namely
(i) any person who has any interest in, or charge upon, the property mortgaged, or in or upon the right to redeem the same, so far as is known to the Bank;
(ii) any surety for the payment of the mortgaged debt or any part thereof; and
(iii) any creditor of the mortgagor who has in a suit for administration of his estate obtained decree for sale of mortgaged property.
The time allowed for payment of the mortgage money or part thereof in the demand notice referred to above, shall be not less than three months after the service of the notice.

Rule No 99. Circumstances under which the State Land Development Bank or the Trustee may take action under Section 133(2)

(1) If a Land Development Bank fails to take action against a defaulter under Sections 129 or 132 or sub-section (i) of Section 133, the State Land Development Bank may call upon the former to take necessary action within a period of seven days and report compliance. If no report of compliance is received, the State Land Development Bank may itself take necessary action as indicated in the aforesaid section and sub-section.

(2) where necessary action is not taken against the defaulter by the Land Development Bank or by the State Land Development Bank, the Trustee may call upon them to take necessary action within seven days and report compliance. If no such report of compliance is received, the Trustee may himself take the necessary action.

Rule No 100. Submission of report for confirmation of sale under Section 134

(1) When the sale of the mortgaged property has been effected by a Land Development Bank under Section 133 and the purchase amount has been received from the purchaser, the Bank shall submit a report of the sale immediately to the State Land Development Bank and the Registrar as required by sub-section (I) of Section 134.

(2) When the sale of the mortgaged property has been effected by the State Land Development Bank or the Trustee under Section 133 and the purchase amount has been received from the purchaser, the State Land Development Bank or the Trustee, as the case may be, shall submit a report of sale immediately to the Registrar as required under subsection (2) of Section 134.

(3) The report referred to in sub-rules (i) and (2) shall contain, amongst other details, the following specific particulars:-
(a) brief account of the circumstances which rendered the sale necessary;
(b) full details showing how the provisions of clauses (a), (b), (i) to (iv) and (c) of the proviso to sub-section (1) of Section 133 have been complied with;
(c) full details showing how the procedure laid down in Rule 107 for holding the sale of immovable property has been followed;
(d) name of the Sale Officer;
(e) place of sale;
(f) date of sale;
(g) description of property sold;
(h) name of purchaser and his address;
(i) value realised;
(j) cost of sale; and
(k) date of receipt of purchase money from the purchaser.

(4) The State Land Development Bank or the Registrar may call for any clarification deemed necessary from the Land Development Bank and satisfy itself or himself that the sale has properly been conducted and the Land Development Bank shall furnish the same forthwith. Similarly, the Registrar may call for any clarification from the State Land Development Bank or the Trustee for the same purpose and such clarification shall be furnished forthwith by the State Land Development Bank or the Trustee as the case may be.

Rule No 101. Sale of immovable property purchase by a Land Development Bank

(1)The Land Development Bank or the State Land Development Bank, which has purchased any immovable property sold under Chapter XI of the Act shall, unless otherwise directed by the Trustee, use its best endeavour to sell the property as early as possible to the best advantage of the Bank. The sale shall be effected by public auction within a period of six months from the date of purchase or within such further period as may be permitted by the Trustee.

(2) The date and the place of such public auction shall previously be notified not less than thirty days by -
(a) advertising the sale of property with full details in one or more local newspapers;

(b) proclamation of sale by beat of drum in the village where the property is situated;

(c) publication of sale notice at-
(i) the village chavdi;
(ii) the office of the Mamlatdar, Tahsildar or Mahalkari concerned;
(iii) the office of the Land Development Bank;
(iv) the principal office of the Deputy Registrar in the District.
The sale shall be subject to confirmation by the Registrar.

Rule No 103. Certain provisions of Rule 107 to apply to sale of immovable property under Chapter XI of the Act

(1) The provisions of clauses (e), (f), (g)t (h), (i). (j) and (k) of sub-rule (11) and of sub-rules (12), (13) and (14) of Rule 107 shall mutatis mutandis apply to the sale of immovable property under Chapter XI of the Act.

(2) The expenses incidental to such sale or attempted sale shall be calculated in accordance with the scale laid down in that behalf by the Registrar, from time to time.

Footnote:
1. Subs, by G.N. of 19-3-1962
2. Subs, by G.N. of 14-1-1963.
3. Subs, by G.N. of 8-11-1971


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