The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979
The Gujarat Agricultural Credit (Provision of Facilities) Act, 1979
This law simplifies and expands access to formal institutional credit for farmers, agricultural workers, and cooperative societies across the State of Gujarat. It empowers agriculturists to pledge, mortgage, or create financial charges on their land, standing crops, and movable property to secure loans from commercial and development banks, bypassing existing legal restrictions on land alienation. The legislation establishes clear priority rules for bank loans over competing claims, streamlines the registration of mortgages, and creates specialized mechanisms for banks to recover defaulted debts. By removing procedural hurdles and exempting bank loans from restrictive money-lending regulations, it encourages institutional lending to boost agricultural investment and rural development.
- 1. Short title, extent and commencement.
- 2. Definitions.
- 3. Removal of restrictions on alienation of land by agriculturists in favour of banks.
- 4. Charge on crop and other movable property in favour of a bank.
- 5. Creation of charge on land in favour of a bank by declaration
- 6. Notice of creation of charge and mortgage in favour of bank to be given to co-operative society.
- 7. Priority of charges and mortgages in favour of a bank, Government and co-operative society
- 8. Exemption from registration of charge or mortgage in favour of bank.
- 9. Noting of charge or mortgage created in favour of bank in Record of Rights.
- 10. Restrictions on sale of land by agriculturist borrower.
- 11. Recovery of dues of bank through authorised officer.
- 12. Rights of bank to acquire and dispose of land or interest therein.
- 13. Exemption to banks from restrictions on acquisition of land in excess of ceiling.
- 14. Land not vesting in Government to be charged for unrecovered dues in certain cases.
- 15. Recovery of dues in respect of financial assistance to carry out State-Sponsored Scheme as arrears of land revenue.
- 16. Bank eligible to become member of co-operative society.
- 17. Inspection of books of co-operative society by bank.
- 18. Disputes between bank and co-operative society.
- 19. Settlement of disputes.
- 20. Recovery of money awarded.
- 21. Power of bank to proceed against defaulting members of a co-operative society.
- 22. Audit inquiry and inspection report of societies to be made available to banks.
- 23. Exemption from legislations relating to money lending and relief of agricultural indebtedness.
- 24. Mortgage executed by managers of joint Hindu families.
- 25. Modified application of section 8 of Act XXXII of 1956.
- 26. Mortgages not to be questioned on insolvency of mortgagors.
- 27. Power of State Government to make rules.
PDF: pending for this language.