Notwithstanding anything to the contrary contained in these rules, if any money borrowed by a Grama Sasan from the State Government or any instalment thereof, or the interest in respect of such loan, is not paid by the Sasan in accordance with the terms and conditions imposed by the State Government in respect of such loan or in accordance with the provisions of these rules-(a)The Director of Grama Panchayats may, in his discretion, attach the funds of the Grama Sasan and, after such attachment no person except an officer appointed in this behalf by the Director of Grama Panchayats, shall in any way deal with the attached funds.(b)The Director of Grama Panchayats may also in his discretion adjust the arrear instalment of principal and the amounts of interest payable by the Grama Sasan in respect of such loans against the grants or subsidy due to the Grama Sasan.
