Section 37A in The M.P. Co-Operative Societies Act, 1960
37A. [ Society not to recover or receive interest greater than the Principal from members belonging to Scheduled Castes and Scheduled Tribes. [[Substituted by Section 2 of M.P. Act No. 2 of 2001 [w.e.f. 17-1-2001].. Prior to substitution Section 37-A reads as under:
'37-A. Society not to recover or receive interest greater than the Principal. - Notwithstanding anything contained in any agreement or any law for the time being in force, no society shall, in respect of any loan advanced by it to a member belonging to Scheduled Caste or Scheduled Tribe or other members owning 5 acre irrigated or 10 acre un-irrigated land, whether before or after commencement of the Madhya Pradesh Co-operative Societies (Second Amendment) Act, 1979, which is repayable within a period not exceeding ten years from the date of its advance charge, recover or receive towards interest thereon during the currency of such loan a sum greater than the Principal and any sum charged, recovered or received in excess thereof shall, if the loan is subsisting be adjusted, towards repayment of the Principal till it is fully repaid and in any other case, shall be refunded to the debtor member within sixty days of the date on which the payment towards interest exceeds the limit aforesaid:Provided that nothing in this Section shall apply to loans advanced by a Development Bank and an Urban Co-operative Bank.']](1)Notwithstanding anything contained in any agreement or any law for the time being in force, no society shall, in respect of any loan advanced by it to a member belonging to Scheduled Caste or Scheduled Tribe, whether before or after commencement of the Madhya Pradesh Cooperative Societies (Second Amendment) Act, 1979, which is repayable within a period not exceeding ten years from the date of its advance, charge, recover or receive towards interest thereon during the currency of such loan a sum greater than the principal and any sum charged recovered or received in excess thereof shall, if the loan is subsisting be adjusted, towards repayment of the Principal till it is fully repaid and in any other case, shall be refunded to the debtor member within sixty days of the date on which the payment towards interest exceeds the limit aforesaid:Provided that nothing in this Section shall apply to loans advanced by a Development Bank and an Urban Co-operative Bank.(2)The loss incurred by a society in carrying out the provisions of sub-section (1) shall be made good by the State Government (Scheduled Castes and Scheduled Tribes Welfare Department) from time to time.]
