Where loan is given by scheduled bank, transfer of rights of Company to the bank for speedy-recovery of its dues from owners of land benefited.

(1) Notwithstanding anything contained in this Act, where any work under any scheme is to be carried out or is completed by the Company, by use of the funds borrowed by it from any scheduled bank and in consequence thereof a charge is created upon any land in favour of the Company under section 15A all the rights and liabilities of the Company for recovery of cost (including interest) of the said work or of any part thereof, with the priority therefor under section 15A, shall stand transferred to and vest in the scheduled bank-(a) upon the Company preparing an interim or final statement under section 13A and notifying the same to the scheduled bank from which the funds are borrowed by the Company ; or(b) upon such scheduled bank notifying to the Company its acceptance of all owners or any of the owners named in the statement as its debtors, instead of being debtors of the Company:Provided that, where the scheduled bank does not accept all the owners but accepts only some of the owners, named in the statement as its debtors, then the rights and liabilities of the Company, with the priority therefor, in respect of lands of only those owners who are accepted as its debtors, by the scheduled bank shall stand transferred to and vest in the scheduled bank. (2) On such transfer, the Company shall inform the owners concerned of the same, and then the amount shown in the interim or final statement, as the case may be, as recoverable against each owner, who is accepted as its debtor by the scheduled bank, shall be paid by the respective owner to the scheduled bank on due dates in such instalments, and with interest at such rate, as may be specified in the statement. (3) Where the rights and liabilities of the Company, in respect of any owners are transferred to and vest in a scheduled bank, the bank shall give an intimation to the talati, or such revenue officer as may be designated by the State Government in this behalf, of the particulars of the lands and the names of such owners and of the