Loans to ineligible and recalcitrant land holders

(1) Where a land-holder is ineligible to obtain credit under the normal rules of the financing agency relating to advancing of loans, the Credit Officer shall arrange for the grant of special loan to such ineligible land-holders by such agency as may be selected by him. (2) The said agency shall advance special loans to the ineligible land-holders through the Command Area Development Authority or its nominee, for executing the scheme for systematic land development, from out of the land created by the Government for the purpose. (3) Where any land-holder included, in the scheme for systematic land development is unwilling either to deposit the money as required under sub-section (2) of section 16 or to incur the expenditure by himself, or to obtain credit facility under section 28 or sub section (1) of this section, for the systematic development of his land, the Credit Officer shall select a financing agency, or any other agency, for the purpose of advancing such amount as may be required towards the cost thereof to the Command Area Development Authority which shall be treated as the borrower. The Land Development Officer or the nominee of the Command Area Development Authority shall receive the said amount on its behalf for the development of the lands of such land-holder, and the said amount shall, notwithstanding anything in any other law for the time being in force, be deemed to have been advanced as a loan or special loan by the aforesaid agency to the land-holder concerned, as if he had applied for such loan: Provided that where the aforesaid agency is the Co-operative Agricultural Development Bank, the said amount shall be deemed to have been advanced as a loan by the said bank to the land-holder concerned, as if he were a member eligible for such loan.