Section 13 in The Karnataka Agricultural Credit Operations and Miscellaneous Provisions Act, 1974.
13. Right of a credit agency to purchase and dispose immoveable property.-
(1)Notwithstanding anything contained in any law for the time being in force, it shall be lawful for a credit agency to purchase agricultural land or interest therein or any other immoveable property which has been charged or mortgaged to it at a sale held in enforcement of the mortgage executed in its favour in respect of the financial assistance given when no person has offered to purchase it for a price which is sufficient to pay to the credit agency the moneys due to it and provisions of Chapter IV of the Karnataka Land Reforms Act, 1961 shall not be applicable in respect of the property so purchased.(2)The property so purchased shall be disposed of by such credit agency by sale within a period of five years from the date of purchase.(3)The sale by a credit agency of such property shall be subject to the provisions of the Karnataka Land Reforms Act, 1961 and the Karnataka Prevention of Fragmentation and Consolidation of Holdings Act, 1966.(4)(a)The right of sale under sub-section (2) shall be subject to the condition that the credit agency shall give notice to the agriculturist referred to in sub-section (1) of section 12 that if he actually pays within the time specified in the notice which shall not be less than sixty days,-(i)the amount specified in the proclamation of sale for the recovery of which the sale was ordered less any amount which may since the date of such proclamation of sale have been received by the credit agency towards such amount; and(ii)such other sums including interest as may be prescribed.(b)The credit agency shall specify in the notice the amount to be paid.(c)If the agriculturist actually pays the amount in terms of the notice the credit agency shall reconvey the property to him at his cost.
