Chapter V RECOVERY OF LOANS AND GRANTS

Notwithstanding anything to the contrary contained in any agreement, the Corporation may, by notice in writing, require any beneficiary, including a guarantor and a debtor, to discharge forthwith, in full or any part of the amount advanced to him as subsidy, grant, loan or in any other fund, to the Corporation- (a) if it appears to the Board that any false or misleading information or particular was given by the beneficiary before or at the time of receiving the benefit; (b) if the recipient has failed to comply with any of the terms of such grants, subsidy or loan imposed by the Corporation at the time of payment; (c) if he contravenes any of the provisions of the agreement or conditions imposed by the Corporation at the time of advancing such loan or making such grant, as the case may be; (d) if there is reasonable apprehension that the beneficiary is unable to utilise the money for the purpose for which it has been given; or (e) if for any other reason it is necessary to do so to protect the interest of the Corporation.

(1) Where any amount is due to the Corporation from any person, including the surety of a debtor, in respect of loans, advances, grants, subsidies or any other financial accommodation granted by it, such amount shall on a certificate being issued by the managing director in the prescribed form, be recoverable as arrears of land revenue by the Collector of the district in which the person from whom the amount is due resides or carries on business or owns any property. (2) The Certificate issued by the managing director under sub-section (1) shall be final and conclusive and shall not be called in question before any authority or court. (3) For the purpose of recovering any amount due to the Corporation in respect of the loan or any other advance, it shall not be necessary to proceed against the principal before proceeding against the surety.

Notwithstanding anything contained in any law for the time being in force, but subject to the provisions in any law made by the Parliament relating to priority of charges and to any prior claim of a bank or of the Government in respect of land revenue or any money recoverable by it as arrears of land revenue, the dues of the Corporation as determined under the preceding section of this Act together with interest accrued thereon and costs of recovery shall be the first charge on the property of the debtor and the guarantor if any.