Section 18(3) in The Gujarat Rents, Hotel and Lodging House Rates Control Act, 1947
(3)Nothing in this section shall apply to any payment made under any agreement entered into before the [specified date] [The words were substituted for the words and figures 'first day of September, 1940' by Gujarat 57 of 1963, section 17.] or to any payment made by any person to landlord by way of a loan, for the purpose of financing the erection of the whole or part of a residential building or a residential section of a building on the land [held by him as an owner] [This portion was added by Bombay 42 of 1951, section 2(1).], a lessee or in any other capacity, entitling him to build on such land, under an agreement which shall be in writing and shall, notwithstanding anything contained in the Indian Registration Act, 1908, (XVI of 1908) be registered. Such agreement shall inter alia include the following conditions, namely,-(i)that the landlord is to let to such person the whole or part of the building when completed for the use of such person or any member of his family;(ii)that the rate of interest on such loan shall not be less than four per cent per annum;(iii)that such loan shall be repayable by the landlord within a period of ten years from the date of the execution of the agreement or within a period of six months from the date of the termination of the tenancy by the landlord, whichever period expires earlier;(iv)that the amount of the loan shall be charge on the entire building and the entire interest of the landlord in the land on which such building is erected:Provided that if the loan has been advanced by more than one person, all such person shall, notwithstanding anything contained in any law for the time being in force, be entitled to a charge on the entire building and the entire interest of the landlord in such land rateably according to the amount of the loan advanced by each of such persons;(v)that the landlord shall use the amount of the loan for the purpose of erecting the whole or part, as the case may be, of the residential building and for no other purpose; and(vi)(a)that the erection of the building shall be completed within a period of two years from the date of the execution of the agreement or if the agreements executed are more than one, from the date of the execution of the first of such agreements:Provided that the said period of two years may be extended to a further period not exceeding one year with the sanction of the Collector;(b)that if the erection of the building is not completed within the period of two years or within the extended period specified in the proviso to clause (a), the loan shall be repayable forthwith to the person advancing the same with interest at the rate of four per cent per annum.
