Rajasthan Agricultural Credit Operations (Removal of Difficulties) Act, 1974(Popularly known as RODA) & Rajasthan Agricultural Credit Operations (Removal of Difficulties) Rules, 1976

In the State of Rajasthan for recovery of arrears of the financial assistance granted for agricultural purpose a special enactment popularly known as RODA in in force. A detail procedure for recovery has been prescribed in the RODA and the Rules framed thereunder. The definitions of “Financial Assistance” & “Agriculture and agricultural purpose” are provided under the RODA, which are as under:
“Financial Assistance” For the purpose of this Act means assistance granted by way of loans, advances guarantee or otherwise for agricultural purpose

“Agriculture and agricultural purpose” shall include making land fit for cultivation, cultivation of land, improvement of land including development of sources of irrigation, soil conservation and land development measures, raising and harvesting of crops, horticulture, forestry, planting and farming and cattle breeding, dairy farming seed farming pisciculture, apiculture sericulture, piggery, poultry farming and such other activities as are generally carried on by agriculturists, dairy farmers, cattle breeders, poultry farmers landless labourers, rural artisans and other categories of persons engaged in similar activities including marketing of agricultural product, their storage and transport and the acquisition of implements and machinery in connection with any such activity.

PROCEDURE FOR RECOEVRY UNDER RODA

(A) Distraint and Sale of Crop or other movable property.

(i) DESIGANTED OFFICIALS

DESIGNATED OFFICIAL IN CASE OF CROPS ETC NOT ATTACHED OR INSTALLED TO THE LAND

For exercising the power of distraint or sale of crops or other produce or other movables charged to the bank to the extent of the agriculturist’s interest therein, the District Collector/Assistant Collector/Additional Collector of the District/Sub-Divisional Officer of the Sub-Division, within whose jurisdiction, the bank or its branch which disburse the loan is situated, shall be the official designated by the State Government for exercising powers for the purpose of section 5(3).

Section 5(3) of RODA: A bank may distrain and sell through an official of the State Government, designated in this behalf by the State Government, the crop or other produce or other movables charged to that bank to the extent of the agriculturists interest therein and appropriate the proceeds of such sale towards all moneys due to the bank from that agriculturist.

DESIGNATED OFFICIAL IN CASE OF STANDING CROPS ETC ATTACHED OR INSTALLED TO THE LAND

In case of standing crops other produce or other movable property attached to or installed on the land, in case the bank or its branch is not located in that District/Sub-Division, the Collector/Additional Collector/ Assistant Collector of the District/Sub-Divisional Officer/Assistant Collector officer of the Sub-Division where the property is situated shall be the designated official

(ii) APPLICATION FOR RECOVERY

For the purpose of distraint and sake in the event of failure of the cultivator to pay an overdue loan, Branch Manager/Agent of the Bank shall make an application to the Collector/Additional Collector/Sub-Divisional Officer concerned giving the following particulars:—

(i) Name of the cultivator his heir or legal representative, as the case may be,
(ii) Certified copy of loan agreement;
(iii) Certified statement of account;
(iv) Amount overdue towards principal and towards interest with date on which it became overdue;
(v) Description crop/other movable property charged, including location and details of defaulter’s interest or share thereof;
(vi) Description of property required to be distrained and sold;
(vii) Description of efforts made by the Bank to effect recovery, if any; and
(viii) Reasons, if known to the Bank for non-payment.

(iii) SCRUIITINY AND ACCEPTANCE OF APPLICATION BY DESIGNATED OFFICIAL

On receipt of the application, along with the necessary documents and information, if the Collector/additional Collector/ Sub-Divisional Officer/Assistant Collector will make an order for distraint of the said property concerned is satisfied that—
(a) the cultivator has taken a loan from the bank against a charge on the property sought to be distrained;
(b) the Charge has been properly affected;
(c) the loan or an instalment of it is over due;
(d) the Bank has issued a demand notice by registered post with acknowledgement due asking the cultivator to pay the overdue amount and a period of one month has elapsed without payment being made;
.

(iv) SHOW CAUSE NOTICE
The Collector/Additional Collector/Sub Divisional Officer/ Assistant Collector concerned shall also issue a show cause notice to the defaulter asking him to make payment within 15 days or to explain why the distrained property may not be put to sale in case of default. Copy of this notice should also be sent to the Bank/Branch manager/Agent of the Bank.

(v) SALE OF PROPERTY

After the period of show cause notice has expired,

(a) if the defaulter has not made payment or

(b)has not entered into any satisfactory arrangements with the authorised representative of the Bank for payment or

(b) where the cause shown in considered to be insufficient.

the Collector/Additional Collector/Sub-Divisional Officer/Assistant Collector concerned shall order sale of the property distrained.

(vi) APPROPRIATION OF PROCEEDS OF SALE

The proceeds of the sale shall be appropriated to payment, of all dues outstanding including cost of recovery, to the Bank and the surplus, if any, shall be paid back to the cultivator.

(B) Recovery of dues of the Banks by sale of immovable property

The District Collector/Additional Collector/Sub-Divisional Officer/Assistant Collector having jurisdiction in the area wherein the immovable property is situated shall exercise the powers of the prescribed authority under section 13 (1) of this Act.

Section 13 (1) of RODA Notwithstanding anything contained in any law for the time being in force, an official of the State Government notified by the State Government as the prescribed authority for the purpose of this section may, on the application of a bank, make an order on or any agriculturist or his heir or legal representative, directing the payment of any sum due to the bank on account of financial assistance availed of by the agriculturist, by the sale of any land or interest therein or any other immovable property, upon which the payment of such money is charged or mortgaged.

(i) APPLICATION FOR RECOVERY

The Branch manager/Agent of the Bank concerned shall for the purpose of this section make an application to the Collector/ Additional Collector/Sub-Divisional Officer/Assistant Collector concerned giving the following particulars with respect to the loan sought to be recovered: —
(i) Name of the cultivator, his heir or legal representative, as the case may be,
(ii) Certified copy of loan agreement;
(iii) Certified statement of account;
(iv) Amount overdue towards principal and towards interest and date on which it became overdue;
(v) Certified copy of documents creating mortgage or charge with evidence regarding its registration;
(vi) Other details of the immovable property sought to be sold such as valuation, detail of co-owners etc. Which may be available with the Bank;
(vii) Details of any other effort made by the Bank to effect recovery; and
(viii) Reasons, if known to the Bank for non-payment.

(ii) SCRUITINY & ACCEPTANCE OF APPLICATION

If upon receipt of this application along with the information detailed above, Collector/Additional Collector/Sub-Divisional Officer/ Assistant Collector is satisfied.
(a) that the loan has been duly taken and the loan amount or an instalment is overdue;
(b) the Bank has issued a demand notice by registered post with acknowledgement due, asking the cultivator to pay the overdue amount, and more than one month has elapsed.
(c)the property sought to be sold has been mortgaged/Charged to the bank against the overdue loan;

(iii) ISSUE OF NOTICE TO CULTIVATOR
On satisfaction as above the Designated Official may issue a notice to the cultivator informing him,—
(i) that an application for recovery of the loan due along-with the necessary documents has been filed by the concerned Commercial Bank for action under section 13 (1) of Rajasthan Agricultural Credit Operations (Removal of Difficulties) Act, 1974;
(ii) if the cultivator wishes to deny liability for payment of the amount determined as due, he should within 30 days of the receipt of this notice, file a petition denying liability and produce documentary and other proof to support his claim;
(iii) the notice should state that if the cultivator does not deny liability or make payment, proceedings will be taken to effect recovery of the amount determined as overdue, through a sale of the immovable property specified in the notice.

(iv) PROCEDURE AFTER ISSUE OF NOTICE

If the cultivator denies his liability the Collector/Additional Collector/Sub-Divisional Officer/Assistant Collector shall after hearing him decide his petition within a further period of two months.