Rights of bank to acquire and dispose of immovable property.

Finance197425 sections6 chapters

Chapter IV Arrangements for recovery of dues by banks

Statutory text

(1) Notwithstanding anything contained in any law for the time being in force, a bank shall have power to itself acquire agricultural land (or interest therein) or any other immovable property which has been charged or mortgaged to it by an agriculturist in respect of any financial assistance availed of by him, provided the said land (or interest therein) or any other immovable property has been sought to be sold by public auction and no person has offered to purchase it for a price which is sufficient to pay to the bank the moneys due to it.
(2) A bank which acquires land (or interest therein) or any other immovable property in pursuance of the power vested in it under sub-section (1) shall dispose of it by sale, within a period to be specified by the State Government in this behalf.
(3) If the bank leases out any land acquired by it under sub-section (1), pending sale thereof as indicated in sub-section (2), the period of lease shall not exceed one year at a time and the lessee shall not acquire any right to purchase that property, notwithstanding any provisions to the contrary in any other law for the time being in force.
(4) A sale by a bank of land (or interest therein) under this section shall be subject to any provisions of any law in force which may place restrictions on purchase of land by non-agriculturists or ceiling for acquisition of land (or interest therein) or by a person not belonging to a particular tribe or scheduled caste or fragmentation of land.

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