Section 14 in Regulations made under the Tamil Nadu Bhoodan Yagna Act, 1958
14. Maximum borrowing power of the Sarvodaya Panchayat.
- The lands gifted to the Sarvodaya Panchayat shall be valued at least once in 3 years by an Officer authorised by the Collector on this behalf. The borrowings of the Sarvodaya Panchayat shall not, at any time, exceed 50'S of the market value of the lands gifted. Only in exceptional cases, the State Bhoodan Yagna Board may, after getting the approval of the Government, grant loans to the Sarvodaya Panchayat in excess of the borrowing power. The Sarvodaya Panchayat shall arrange for repayment of the loans on the due dates.The receipts shall be issued by the Secretary for all moneys paid to the Sarvodaya Panchayat. In the case of borrowings, the bond or agreement executed by the Sarvodaya Panchayat shall be signed by 3 members of the Sarvodaya Panchayat of whom the Chairman or the Secretary shall be one. A form of agreement to be executed in this regard is appended (annexure).
