Vidhi Codex

The Maharashtra Provision of Facilities for Agricultural Credit by Banks Act, 1974

The Maharashtra Provision of Facilities for Agricultural Credit by Banks Act, 1974

Finance197425 sections6 chapters

This state law applies throughout Maharashtra and governs how banks provide loans to farmers. It defines who qualifies as an agriculturist and includes activities like farming, livestock rearing, and horticulture within its regulatory scope. The Act matters because it encourages bank lending by removing legal restrictions that previously prevented farmers from using their land as security for loans. By allowing banks to take a charge on land, crops, or other property, the legislation ensures that farmers have easier access to necessary credit, helping them invest in their operations and improve their financial stability.

Start reading →Read full ActSections

Chapter I Preliminary →

  1. 1Short title, extent and commencement.
  2. 2Definitions.

Chapter II Rights of agriculturists to alienate land or interest therein in favour of banks →

  1. 3Removal of restrictions on alienation.
  2. 4Charge on crop and other movable property in favour of a bank.
  3. 5Creation of charge on land in favour of bank by declaration.

Chapter III Charges and mortgages in favour of banks and priorities thereof →

  1. 6Removal of disability in creation of charges and mortgages.
  2. 7Priority of charges and mortgages in favour of a bank, Government and co-operative society.
  3. 8Registration of charge or mortgage in favour of a bank.
  4. 9Registration of charge or mortgage in favour of a bank.
  5. 10Restrictions on creation of tenancy by agriculturist borrower.

Chapter IV Arrangements for recovery of dues by banks →

  1. 11Recovery of dues of bank through prescribed authority.
  2. 12Rights of bank to acquire and dispose of immovable property.
  3. 13Exemption to bank from restrictions on acquisition of land in excess of ceiling.

Chapter V Financing of co-operative societies by banks →

  1. 14Bank eligible to become member of co-operative society.
  2. 15Inspection of books of a co-operative society by a bank.
  3. 16Disputes between a bank and a co-operative society.
  4. 17Settlement of disputes.
  5. 18Recovery of money awarded.
  6. 19Powers of a bank to proceed against defaulting members of a co-operative society.
  7. 20Audit, inquiry and inspection reports of societies to available to banks.

Chapter VI Miscellaneous →

  1. 21Exemption from legislations relating to money-lending and relief of agricultural indebtedness.
  2. 22Mortgage executed by managers of joint Hindu family.
  3. 23Modified application of section 8 of Act XXXII of 1956.
  4. 24Mortgages not to be questioned on insolvency of mortgagors.
  5. 25Power of State Government to make rules.

PDF: pending for this language.