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 [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
(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:-
||Fees to be paid in Rs.
|Upto Upto Rs. 5,000
|Rs. 5,001 to Rs. 15,000
|Rs. 15,001 to Rs. 30,000
|Rs. 30,001 to Rs. 50,000
|Rs. 50,001 and above
(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
(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
[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”
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
(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
(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
(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.