Section 57 in Jammu and Kashmir Co-operative Societies Rules, 2001
57. Procedure for submission and consideration of application for loans from an Agriculture and Rural Development Bank
(1)All applications for loan from an Agriculture and Rural Development Bank shall be made in the form prescribed by the State Agriculture and Rural Development Bank with the approval of the Registrar. The form shall among other things contain a list of documents, which are required to be submitted for purposes of dealing with the applicant.(2)Every Agriculture and Rural Development Bank shall keep sufficient stock of printed copies of the forms of loan application and shall issue them to the intending borrower on payment of such fee as may be specified from time to time by the State Agriculture and Rural Development Bank with the approval of the Registrar.(3)Every Agriculture and Rural Development Bank shall specify from time to time, the name, designation and address of the officer (hereinafter in this Chapter referred to as " the receiving officer") who shall receive all loan application forms from the intending borrowers.(4)The application together with copies of necessary documents and amount of all fees specified by the State Agriculture and Rural Development Bank with the approval of the Registrar and deposit equivalent to the value of one share of the Bank, shall be submitted by the applicant to the receiving officer.(5)On receipt of an application for loan, the receiving officer shall put his initials on the application and mention his designation and the date of receipt of the application.(6)After an application for loan has been received the receiving officer shall verify whether it contains all the necessary particulars and is accompanied by the necessary documents. If any details are lacking, he shall get the application completed by the applicant.(7)Each application shall be entered in the chronological order in the register of application for loan from the Agriculture and Rural Development Bank to be maintained by the receiving officer and shall be dealt with in the same order.(8)Immediately after the application is entered in the register of application for loans from the Agriculture and Rural Development Bank, the receiving officer shall forward it to the Land Valuation Officer or such other persons as may be nominated in this behalf by the Registrar, Cooperative Societies within whose jurisdiction the land in respect of which the application is made is situated (being the person prescribed for the purposes of sub-section (1) of section 88 of the Act, hereinafter in this Chapter referred to as the Public Inquiry Officer'). The Public Inquiry Officer shall give at least eight days public notice in form 'F' calling upon all persons interested to present their objections to the loan, if any. The notice shall also be given by beat of drum and shall be affixed at conspicuous places in the village or villages where the applicant resides and in the limits of which the land or lands proposed to be improved or offered as security for the loan is or are situated. A copy of the notice shall be exhibited in the Head Office and relevant branch office, if any, of the Agriculture and Rural Development Bank concerned and in the office, if any, of the person giving notice.(9)If any person interested to raise objection fails to appear as stated or required by the aforesaid notice, the question at the issue will be decided in their absence and such persons will till such time as the loan together with interest thereon or with other dues arising out of the loan are paid in full by the loanee. The Public Inquiry Officer shall consider every objection submitted under sub-section (1) of section 88 in the manner laid down in the section.(10)The Public Enquiry Officer shall then forward the application within two days after its disposal to the Agriculture and Rural Development Bank concerned. The Agriculture and Rural Development Bank may appoint an Enquiry Officer (hereinafter in this Chapter referred to as the "Enquiry Officer") to enquire into the application. The Enquiry Officer shall make enquiry by personally visiting the land in which the improvement is proposed to and shall verify the records of the lands and other property offered as security. He shall conduct his enquiry in accordance with the form to be prescribed by the State Agriculture and Rural Development Bank.In case the Public Enquiry Officer is unable to forward the application within two days, he shall make a report to the Registrar, stating thereunder, the reasons therefor and he shall thereafter act in accordance with such directions as may be issued to him by the Registrar.The Enquiry Officer may make such other enquiries as may be necessary and shall value lands according to such formula as may be laid down by the State Agriculture and Rural Development Bank, with the approval of the Registrar from time to time, estimate the repaying capacity of the applicant and examine the feasibility and the utility of the proposed improvement. He shall then submit his report stating therein the amount of loan which may be granted to the applicant against the security and specify the period within which it may be recovered from him. The Enquiry Officer shall complete his enquiry within fifteen days of the receipt of the application.If the Enquiry Officer is unable to complete his enquiry within fifteen days, he shall make a report to the Registrar stating therein the reasons therefor and he shall thereafter act in accordance with such directions as may be issued to him by Registrar.(11)After completion of the Enquiry, the application together with his report shall be submitted by the Enquiry Officer to the Agriculture and Rural Development Bank together with the following certificates:-(a)Certificate regarding outstanding Government dues;(b)Any other relevant certificate.(12)On receipt of the report of the Enquiry Officer under sub-rule (11), the Agriculture and Rural Development Bank shall satisfy itself that the inquiry has been properly conducted. If there are any deficiencies, the Bank shall get them completed immediately.(13)The Agriculture and Rural Development Bank may then undertake such further scrutiny as may be necessary and pass orders within 30 days. Decision shall be communicated to the applicant within 7 days thereafter. In case the final orders are not passed within 30 days, the Bank shall make a report to the Registrar stating therein the reason therefor and shall thereafter act in accordance with such directions as may be issued to it by Registrar.(14)All the applications received by the Agriculture and Rural Development Bank shall be disposed of by the Bank within maximum period of four months. If the Bank is unable to dispose of an application for loan within the period of 4 months, it shall make a report to the Registrar stating therein the reasons therefor and the Bank shall thereafter act in accordance with such directions as may be issued to it by the Registrar.(15)In the case of rejection of application for loans, the reasons therefor shall be communicated by the Bank to the applicant. When the loan has been sanctioned, the Bank shall lay down the terms and conditions regarding grant of loan and payment of installments, submission of report on the progress of improvement of land and release of subsequent installment, the applicant shall be asked by the Agriculture and Rural development Bank to remain present at the Head Office or Branch Office of the Bank on a date to be fixed for execution of the mortgage deed and for receiving loan or the communication of sanction of loan to the applicant. First installment thereof, such date shall not ordinarily be latter than 15 days from the date of receipt of application.(16)The applicant while receiving the amount of the loan or the first installment of the loan shall purchase share of the Bank to such extent as may be required under bye-laws of the Bank. The Agriculture and Rural Development Bank shall issue a receipt to the applicant giving full particulars of the amount paid by him from time to time.(17)Failure to comply within time limits specified in this rule shall not in any manner affect the validity of the sanction of the loans by the Agriculture and Rural Development Bank or by the State Agriculture and Rural Development Bank.
