Section 49(1) in The Gujarat Co-Operative Societies Act, 1961
(1)Notwithstanding anything contained in this Act or in any other law for the time being in force,-(a)any person who makes an application to a society of which he is a member, for a loan shall, if he owns any land or has interest in any land as a tenant, make a declaration in the prescribed form. Such declaration shall state that the applicant thereby creates a charge on such land or interest specified in the declaration for the payment of the amount of the loan which the society may make to the member in pursuance of the application, and for all future advances, if any, required by him which the society may make to him as such member, subject to such maximum as may be determined by the society, together with interest on such amount of the loan and advances;(b)any person who has taken a loan from a society of which he is a member, before the date of the coming into force of this Act, and who owns any land or has interest in land as a tenant, and who has not already made such a declaration before the aforesaid date shall, as soon as possible thereafter, make a declaration in the form and to the effect referred to in clause (a); and no such person shall, unless and until he has made such declaration, be entitled to exercise any right as a member of the society;(c)a declaration made under clause (a) or (b) may be varied at any time by a member, with the consent of the society in favour of which such charge is created;(d)no member shall alienate the whole or any part of the land or interest therein, specified in the declaration made under clause (a) or (b) until the whole amount borrowed by the member together with interest thereon, is repaid in full :Provided that, it shall be lawful for a member to execute a mortgage bond in favour of a mortgage bank or the State Government in respect of such land or any part thereof, under the rules made under the Bombay Irrigation Act, 1879 (Bombay VII of 1879) or under any corresponding law for the time being in force, for the supply of water from a canal to such land :Provided further that, if a part of the amount borrowed by a member is paid, the society may, on an application from the member, release from the charge created under the declaration made under clause (a) or (b) such part of the movable or immovable property specified in the declaration as it may deem proper, with due regard to the adequacy, of the security for the balance of the amount remaining due from or outstanding against the member;(e)any alienation made in contravention of the provisions of clause (d) shall be void;(f)subject to the prior claims of the Government in respect of land revenue or any money recoverable as land revenue, and to the charge, if any created under an award made under the Bombay Agricultural Debtors Relief Act, 1947 (Bombay XXV of 1947) or any corresponding law for the time being in force in any part of the State, and to any mortgages created in favour of a [land development bank] [Substituted for the words 'land mortgage bank' by Gujarat 24 of 1964] by its members there shall be a first charge in favour of the society on the land or interest specified in the declaration made under clause (a) or (b), for and to the extent of the dues owing by him on account of the loan; and(g)notwithstanding anything contained in Chapter X-A of the Land Revenue Code, the Record of Rights maintained thereunder shall also include the particulars of every charge on land or interest created under a declaration under clause (a) or (b).
