IMPORTANT SECTIONS OF RODA

3. Removal of restrictions on alienation.— Notwithstanding anything contained in any law for the time being in force any custom or tradition, it shall be lawful for an agriculturist whose rights of alienation of land or of any interest therein are restricted, to alienate the land or his interest therein, including by creation of a charge or mortgage on such land or interest in favour of a bank for the purpose of obtaining financial assistance from that bank.

5. Charge on crop and other movable property in favour of a bank.— (1) It shall be lawful for an agriculturist to create a charge on the movable property owned by him or on the crops raised by him, standing or otherwise or other produce from land cultivated by him, to the extent of his interest therein, in favour of a bank, to secure financial assistance from that bank, notwithstanding that he may not be owner of the land on and from which the crop is raised.

(2) Notwithstanding anything to the contrary in the Rajasthan Co-Operative Societies Act 1965 or any other law for the time being in force, no charge in respect of financial assistance extended by a Co-operative Society to an agriculturist shall have priority over a charge on the crops raised by him, standing or otherwise, or any other movable property in respect of any financial assistance given to him by a bank, provided the financial assistance made by the bank is prior in point of time to that of the financial assistance extended by the Co-operative Society.

(3) 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.

6. Creation of charge on land in favour of a bank by declaration.— (1) Where an agriculturist creates a charge on land, or any other immovable property which he owns or in which he has an interest in respect of any financial assistance given to him by a bank, he may make a declaration on the lines of the form set out in the Schedule hereto or as near thereto as circumstances permit, declaring that thereby he creates in favour of the bank, a charge on such land or his interest therein, or other immovable property, as the case may be, to secure the financial assistance given by him by the bank.

(2) A declaration made under sub-section (1) may be varied from time to time by the agriculturist with the consent of the bank in whose favour the declaration has been made, such variation shall take effect from such date on which the variation, if it had been an original declaration would have effect under section 9.

7. Removal of disabilities in creation of charges and mortgages.—Notwithstanding anything to the contrary contained in the Rajasthan Co-Operative Societies Act 1965or any other law for the time being in force and notwithstanding that any land or interest therein stands already charged or mortgaged to a Cooperative Society, it shall be lawful for an agriculturist to create a charge or mortgage on such land or interest therein in favour of a bank as security for any financial assistance given to the agriculturist by that bank.

8. priority of charges and mortgages in favour of government, a bank, and a Co-operative Society. — (1) Notwithstanding anything to the contrary in any law for time being in force. —
(a) No Charge or mortgage created on any land or interest therein after the commencement of this Act, in favour of Government or a Co-operative Society shall have priority over a charge or mortgage on such land or interest created by an agriculturist in favour of a bank as security for financial assistance given to the agriculturist by the bank after the commencement of this Act, and prior to the charge or mortgage in favour of Government or the Co-operative Society; and
(b) any charge or mortgage created on any land or interest therein favour of a bank in respect to financial assistance given to an agriculturist by that bank shall have priority over any other charge or mortgage that may have been created over such land or interest in favour of any person other than Government, a Co-operative Society or any other bank, prior to the date on which the charge or mortgage was created in favour of the bank.
(2) Where different charges or mortgages over the same land or interest therein have been created by an agriculturist in favour of Government., a Co-operative Society or a bank or more than one bank, any such charge or mortgage created as security for financial assistance given by Government, Co-operative Society or the bank or banks by way of term loan for development purposes shall have priority over the other charges or mortgages created in favour of government, Co-operative Society or any of the banks provided prior notice or any such financial assistance by way of term loan for development purpose had been given to such Government, Co-operative Society or bank and such Government, Co-operative Society or bank has concurred in such financial assistance, and where more than one such charge or mortgage is as security for financial assistance given by way of term loan, the charges or mortgages by way of security, for term loan for development purposes will rank for priority in accordance with the dates of their creation.

Explanation. — For the purposes of this section, “Term loan for development purpose’ shall mean financial assistance which would generally lead to improvement of agriculture and/or building up of assets in agriculture but shall not include financial assistance for meeting working capital expenses/seasonal agricultural operation and marketing of crops.

(3) Nothing in this section shall apply to borrowings only from one or more Co-operative Societies including land mortgage Banks.

9. Registration of charge and mortgage in favour of banks.— (1) Notwithstanding anything contained in the Registration Act, 1908, a charge in respect of which a declaration has been made under sub-section (1) of section 6, or in respect of which a variation has been made under sub-section (2) of that section, or a mortgage executed by an agriculturist in favour of a bank in respect of financial assistance given by that bank, shall be deemed to have been duly registered in accordance with the provisions of that Act with effect from the date of such charge, variation or mortgage, as the case may be, provided that the banks sends to the Sub-Registrar within the local limits of whose jurisdiction the whole or any part or the property charged or mortgaged the situate, within the time stipulated by the State Government for this purpose, by registered post acknowledgement due, a copy of the document creating such charge, variation or mortgage duly certified to be a true copy by an employee of the bank authorised to sign on its behalf.

(2) The Sub-Registrar receiving the declaration in respect of a charge or variation or a mortgage referred to in sub-section (1) shall, as immediately as practicable on receipt thereof, record, in a register to be maintained in his behalf, the fact of the receipt of such declaration, variation or mortgage for registration.

10. Noting of charge or mortgage created in favour of a bank in the Record of Rights.— Whenever a charge or a mortgage on land or interest therein is created in favour of a bank by an agriculturist, the bank may give intimation to the Tehsildar or such other revenue official as may be designated in this behalf by the State Government, of the particulars of the charge on mortgage in its favour. The Tehsildar or the other revenue official shall make a note of the particulars of the charge or mortgage in the record of Rights relating to the land over which the charge or mortgage has been created.

11. Restriction on creation of tenancy by an agriculturist borrower.— (1) Notwithstanding anything contained in any law for the time being in force, an agriculturist who has availed himself of financial assistance from a bank by creating a charge or mortgage on any land or interest therein, shall not, so long as the financial assistance continues to be outstanding, lease or create any tenancy rights on such land or interest therein without prior permission in writing of the bank if he has not already leased or created tenancy rights thereon at the time of availing of the financial assistance from the bank.

(2) Any lease granted, or tenancy rights created in contravention of this section shall be void.

12. Removal of bar to attachment and sale by process of court.— Nothing any law shall prevent in any manner a bank from causing any land or any interest therein charged or mortgaged to it by any agriculturist to secure any financial assistance to be attached and sold through a Civil Court an applying the proceeds of such sales towards all moneys due to it from the agriculturist including the cost and expenses as may be awarded by the Court.

13. Recovery of dues of a bank through a prescribed authority. —

(1) 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:

Provided that no order shall be made by the prescribed authority under this sub-section for the sale of any interest therein or any other immovable property upon which the payment of money is charged or mortgaged as the case may be, unless the agriculturist or the heir or legal representative of the agriculturist, as the case may be, has been given an opportunity of being heard and has been served with a notice by the prescribed authority calling upon him to pay the amount due and default has been made in payment thereof for three months after the determination of liabilities by such authority.

(2) Every order passed the prescribed authority in terms so sub-section (1) shall be deemed to be a decree of a Civil Court and shall be executed by him in the same manner as a decree of such court.

Explanation. — For the purpose of exercising powers conferred by this sub-section the prescribed authority shall be deemed to be a Civil Court.

(3) Nothing in this section shall debar a bank from seeking to enforce its rights in any other manner under any other law for the time being in force.

14. Right of bank to acquire and dispose of immovable property.— (1) Notwithstanding anything contained in any law of the time being in force, a bank shall have power to itself acquire agricultural land or interest therein or any other immovable property which has been charged or mortgaged to it by an agriculturist in respect of any financial assistance availed of by him, provided the said land or interest therein or any other immovable property has been sought to be sold by public auction and no person has offered purchase if for a price which is sufficient to pay to the bank the money due to it.
(2) A bank which acquires land or interest therein or any other immovable property in exercise of the power vested in it under sub-section (1) shall disposed it of by sale, within a period to be specified by the State Government in this behalf.

(3) if the bank has to lease out any land acquired by it under sub-section (1) pending sale thereof as indicated in sub-section (2), the period of lease shall not exceed one year at a time and the leases shall not acquire any interest in that property notwithstanding any provisions to the contrary in any other law for the time being in force.

(4) A sale by a bank of land or interest therein in terms of sub-section (2) shall be in favour of persons as may be prescribed by the State Government under section 30 of this Act and shall be subject to any provisions of any law in force which may place restriction on purchase of land by non agriculturists or selling for acquisition of land or by a person not belonging to a Scheduled Caste or Scheduled Tribe or fragmentation of land.

15. Exemption to Banks from restriction on acquisition of land in exercise of ceiling.— nothing in any law for the time being in force placing a ceiling or limit on the holding of land shall apply to a bank acquiring land in terms of section 14 and holding such land till such time the banks is in a position to sell the land in the manner provided in section 14 or otherwise, at a price which is adequate to cover its dues.