Legal Question in Banking Law in India

31.01.2015

Dear Sir / Madam,

I am quoting the relevant extracts and Sections from the Maharashtra Provision of Facilities for Agricultural Credit Act, 1974 for your ready reference :

21.

A copy of the document creating a charge or variation of the declaration referred to in

section 8 shall not be a carbon copy but shall be a neatly handwritten, printed or type

written copy or a cyclostyled copy or typewritten matter on only one side of the paper.

22.

Such copy of the document shall further contain the following particulars, namely:

(a) the number of stamps and their value, and

(b)a copy of the endorsement made by the stamp vendor or the treasury or the

bank on such stamps.

23.

Copies of instruments which comply with the requirements mentioned above duly

certified by the officer authorized by the Bank in this behalf shall be sent by the bank to the

Registering Officer concerned within a period of three months from the date of execution of the instruments by registered post or by hand delivery.

24.

The registering officer receiving the copy of the document referred to in rule 23 shall

send the acknowledgement normally within a week from the date of its receipt.

25.

Where the registering officer is satisfied that the document referred to in rule 21 has not

been made on a duly stamped paper, he shall forthwith return the copy to the bank with an

endorsement to that effect.

26.

Where a copy of the document creating a charge has been sent to a registering

officer under section 8, the bank or any employees thereof duly authorized by it in this behalf, may at any time inspect the relevant record of the registering officer concerned to ensure whether the said copy has been filed in accordance with the provisions under section 8, in his book No.1, prescribed under section 51 of the Registration Act, 1908, No fee shall be charged for such inspection.

27.

On receipt of intimation under section 9, the talathi or such other revenue officer as may

be designated by Government, shall acknowledge the same within 15 days from the date of

receipt of such intimation. He shall also make note of the particulars of charge or mortgage in

the Record of Rights relating to the land, within one month from the date of receipt of

such intimation. The bank in whose favour such a charge is created or mortgage is given, may, at any time through any of its employees duly authorized in that behalf, inspect the relevant record of the revenue officer concerned, to ensure whether the said charge or mortgage has been duly recorded and taken note of in the concerned register.

28.

The talathi or concerned revenue officer shall not cancel or change or alter the relvant

entry, unless intimation in writing to that effect is received from the concerned bank.

As is evident from Section 22(a) above, the document is required to be adequately stamped.

Regards,