Section 41(2) in The M.P. Co-Operative Societies Act, 1960
(2)No member shall alienate the whole or any part of the land or interest therein which is subject to charge under sub-section (1) until the whole amount borrowed by the member together with interest is paid in full:Provided that it shall be lawful for a member or a past member to mortgage in favour of-(i)a Co-operative Land Development Bank; or(ii)a bank under the Madhya Pradesh Krishi Udhar Pravartan Tatha Prakirn Upbandh (Bank) Adhiniyam, 1972 (No. 32 of 1973); or(iii)the State Government such land or any part thereof under the rules made under the Madhya Pradesh Irrigation Act, 1931 (No. 3 of 1931), for supply of water from a canal to such land or any part thereof.
