Prohibition of transfer of property without permission of the sanctioning authority.

(1) Where after the commencement of this Act, any property has been taken as security for any loan granted or any grant made under this Act, then, notwithstanding anything to the contrary in any other law for the time being in force or in the deed of transfer or other document relating to such property, the same shall not be transferred without the written permission of the sanctioning authority.

(2) The sanctioning authority may, in its discretion, by order, permit the transfer of any such property, if the transfer is made in furtherance of the purposes for which the loan was granted or the grant was made, and the assets resulting from the transfer are to be wholly utilised in furtherance of the said purposes.

Explanation.- When granting permission under this sub-section, the sanctioning authority may impose such conditions as it may deem fit to ensure that the assets resulting from the transfer are wholly utilised in furtherance of the purposes for which the loan was granted or the grant was made.

(3) If any such property is transferred without such permission or in contravention of any condition imposed by the sanctioning authority, the transfer shall be null and void.