MADHYA PRADESH LOK DHAN (SHODHYA RASHIYON Kl
VASULI) NIYAM, 1988[1] In exercise of the powers conferred by
Section 6 of the Madhya Pradesh Lok Dhan (Shodhya Rashiyon Ki Vasuli) Adhiniyam,
1987 (No. 1 of 1988) the State Government hereby makes the following rules,
namely : These rules may be called the Madhya Pradesh
Lok Dhan (Shodhya Rashiyon Ki Vasuli) Niyam, 1988. In these rules, unless the context otherwise
requires : (a)
"Act"
means the Madhya Pradesh Lok Dhan (Shodhya Rashiyon Ki Vasuli) Adhiniyam, 1987
(No. 1 of 1988); (b)
"Section"
means a section of the Act; (c)
"Authority"
means Banking Company, Corporation or Government Company as defined in the Act; (d)
"Recovery
Certificate" means a certificate issued under sub-section (1) of Section 3
of the Act; (e)
"Recovery
Officer" means an official designated by the State Government or the
Collector to recover the amounts mentioned in the Recovery Certificate in
accordance with the provisions of sub-section (2) of Section 3 of the Act; (f)
"Form"
means a form appended to these rules. The Recovery Certificate to be sent under
sub-section (1) of Section 3 shall be in Form I. (a)
The
cost of proceedings, @3% of the principal amount recovered, referred to in
clause (c) of Section 3 of the Act will first be deposited in the treasury
under a new sub-head to be opened under the Major Head 0070-Other
Administrative Services-Miscellaneous Receipts (Cost of Proceedings). (b)
A
separate fund will be created under the Public Account of the State called the
"BANK RECOVERIES-COST OF PROCEEDINGS FUND". (c)
Into
this fund shall be paid every year, an amount equal to the sum of receipts
realised as costs of proceedings during the previous year from the districts
where special recovery units have been set up under separate arrangement with
banks (hereinafter called the "sponsor banks") on a cost sharing
basis. This expenditure shall be debitable to Major Head-2052 Secretariat
General Services-091 Attached Offices-002 District Recovery Units. (d)
Half
the recurring expenditure on the special recovery units during the year will be
debited to the "BANK RECOVERIES-COST OF PROCEEDINGS FUND". (e)
Residual
credit balances in the fund, if any, will be distributed pro-rata equally
between the sponsor banks but amounts so paid to the banks will be limited to
half the expenditure incurred on the special recovery units during the previous
year. (f)
Debit
balances, if any, will be carried forward from year to year and adjusted
against future accretions to the fund. (a)
The
Recovery Officer shall follow the same procedure for issue of process and
conduct of distraint proceedings as laid down under the Madhya Pradesh Land
Revenue Code, 1959 and rules made thereunder. (b)
On
receipt of a recovery certificate from the Authority, the Recovery Officer
shall proceed to register a case immediately and issue demand notice to the
debtor in Form II in the manner prescribed in the Madhya Pradesh Land Revenue
Code, 1959 and rules made thereunder, within a period of fifteen days. (c)
If
the debtor fails to deposit the amounts due within the period stipulated in the
demand notice, the Recovery Officer shall issue notice to the Guarantor in Form
III. (d)
A
copy of every demand notice or warrant of attachment issued by a Recovery
Officer shall be endorsed to the Authority whose dues it purports to recover. (e)
On
receipt of a Demand notice or warrant of attachment, the person may deposit the
amount due either with the authority from which he had taken the loan or the
Recovery Officer. Amounts due to the Authority by the person
shall be reckoned with reference to the dates the sums are deposited by him
with the Recovery Officer and not the date (s) the sums are actually received
by the Authority. (a)
If
after the issue of a recovery certificate by the Authority, any amount is
received by it from any person on account of the amounts owed to it thereunder,
the Authority will issue to the person a receipt in duplicate therefor,
mentioning, inter alia, the name of depositor, father's name, address, Recovery
case number and amount received (separately indicating the sums adjusted
against process fee, cost of proceedings, principal and interest). The
Authority shall, within 10 days from the receipt of the amount, deposit the
process fees and cost of proceedings so recovered into the nearest
treasury/sub-treasury by separate challans under the Major Heads 0029 and 0070
respectively. The Authority, after retaining copies for its own records, shall
forward the original receipted copies of the challans to the Recovery Officer
along with a monthly return in Form IV by the 10th of the following month. The
Recovery Officer, on receipt of this return shall incorporate the recoveries
indicated therein in his Recovery Register (Form VII). (b)
A
penalty upto Rs. 100 may be levied by the Recovery Officer for failure to
submit the return/copies of paid challans within the stipulated period, after
issuing due notice to the Authority and providing an opportunity to it to
explain reasons for the default. Penalties so collected, if any, will be
credited by the Recovery Officer in the nearest treasury/sub-treasury by
challan under the Major Head 0029. (a)
Where
an amount is received by Recovery Officer, he shall issue to the person a
receipt therefor, mentioning the name of the person, father's name, address,
recovery case number and amount received (separately indicating sums received
against process fee, cost of proceedings, principal and interest) and
immediately credit out of the amount received the amount of process fee and
cost of proceedings by separate challans in the nearest treasury/sub-treasury
under Major Heads 0029 and 0070 respectively, indicating therein all details of
the case in which the amount has been recovered. (b)
The
remaining amount realized by the Recovery Officer shall be deposited within 3
days with the concerned Authority, or, on its behalf, into a separate bank
account to be opened, with the prior approval of the Collector, in the name of
the "Recovery Officer-bank dues recoveries" in one or more bank
branches (hereinafter referred to as the Link Branches). The amount will be
deposited together with Authority wise lists in triplicate in Form V. The Link
Branches, while retaining one copy for their record, shall forward one copy of
the list together with the amounts so received to the concerned Authorities
within 3 days. The third copy, duly acknowledged, shall be returned to the
Recovery Officer for his record. (a)
After
the amounts specified in the recovery certificate have been recovered from the
concerned person (s), the Recovery Officer shall advise the concerned Authority
immediately of the same by giving him intimation in Form VI indicating also
details of amounts recovered by him directly, and the amounts deposited by the
person (s) with the Authority and reported to him in Form IV. (b)
Where
the Recovery Officer after execution of the recovery process has come to the
conclusion that the amounts mentioned in the Recovery Certificate filed by the
concerned Authority cannot be recovered, in part or full, for any reason, he
shall also intimate the same to the Authority in Form VI. The Authority shall,
if he has knowledge of realizable assets with the person (s) guarantor(s),
bring these to the attention of the Recovery Officer. In the event the
Authority is unable to locate other assets or fails to respond within three
months from receiving Form VI from the Recovery Officer, the Recovery Officer
shall return the certificate to the concerned Authority with his comments. The Recovery Officer shall register Recovery
Certificates received by him in the manner prescribed in the Land Revenue Code
and rules made thereunder. Duplicate copies of each Recovery Certificate shall
be returned by him duly acknowledged to the Authority. The Recovery Officer,
after assigning case number to each Recovery Certificate in the manner
prescribed for dealing with revenue cases under the Land Revenue Code and
rules, shall enter the particulars in a "Recovery Register" to be
maintained in Form VII. The Recovery Officer shall enter all amounts recovered
by him directly or reported to him by the Authority in Form IV into the
Recovery Register. A separate register will be maintained for each banking
company/corporation functioning in the Tehsil. Daily collections made by the
Recovery Officer/reported by the Authority, shall be posted in a register to be
maintained by the Recovery officer in Form VIII. This register shall be
reconciled with the recovery register on the last day of each month and a certificate
recorded. The Recovery Officer shall submit a monthly report in Form IX by the
twentieth of the month to the District Collector, who shall send a consolidated
report in Form X for the District by the last day of the month to the
Directorate of Institutional Finance.MADHYA
PRADESH LOK DHAN (SHODHYA RASHIYON Kl VASULI) NIYAM, 1988