Recovery of unutilised loans

When a loan advanced by a society is not utilised for the purpose for which it was advanced, the society may, irrespective of the period for which the loan was advanced, recall and recover the entire loan along with interest and costs and charges, if any, incurred in advancing and effecting recovery after giving the debtor an opportunity of being heard. Explanation:- For the purposes of this chapter, the borrowing society means a society which borrows loans by way of floating debentures or issuing bonds.