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

1[15C. Where loan is given by scheduled bank, transfer of rights of Company to the bank for speedy recovery of its dues from owners of lands 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, with the help of the funds borrowed by it from any scheduled bank and a charge is consequently created upon any lands 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-

1. (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 ; and
2. (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.

1. (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.
2. (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 Talathi, or such 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 charge or mortgage created thereon in its favour. The Talathi or designated officer shall show in the record of rights or, where there is no record of rights, in the prescribed village record and in the village accounts the name of the bank as the mortgagee of the lands and make a note of other particulars of the charge created or mortgage given. The bank shall likewise give an intimation to the Talathi or designated officer as soon as the whole amount due from any owner ceases to be outstanding, and thereupon the Talathi or designated officer shall make a suitable note in the record of rights or the village record and accounts about release of the land from the charge or mortgage, as the case may be.
3. (4) The provisions of sections 15A and 15B shall apply mutatis mutandis to any amount or instalment thereof payable by any owner of land to any scheduled bank under this section, as if references in those sections to the Company and the Company Officer were references to the scheduled bank and the Bank Officer, respectively.]