REGISTERED No. D. 221
The Gazette of India
EXTRAORDINARY
PART II—Section 2
PUBLISHED BY AUTHORITY
No. 25] NEW DELHI, MONDAY, APRIL 33, 1973/BAISANA 3 , 1895
Separate paging is given to this part in order that it may be filed
as a separate compilation.
LOK SABHA
The following Bill was introduced in Lok Sabha on the 23rd April, 1973: —
BILL NO. 29 OF 1973
A Bill further to amend the Agricultural Refinance Corporation Act,
1963.
BE it enacted by Parliament in the Twenty-fourth Year of the Repub- lic of India as follows: —
1. This Act may be called the Agricultural Refinance Corporation Short title.
(Amendment) Act, 1973.
10 of 1963.
Amend-
ment of
section 22.
2. In section 22 of the Agricultural Refinance Corporation Act, 1963, for sub-section (4), the following sub-sections shall be substituted, namely: —
" (4) No accommodation shall be granted under clause (a), clause (b) or clause (d) of sub-section (3) to an eligible institution unless it is fully and unconditionally guaranteed by Government as to the repayment of principal and payment of interest:
Provided that no such guarantee shall be required in cases in which—
(i) security, to the satisfaction of the Board, is furnished by the eligible institution, or
(it) the Board, for reasons to be recorded by it in writing, decides that no such security or guarantee is necessary:
(341)
342 THE GAZETTE OF INDIA EXTRAORDINARY [PABT II—Provided further that any sums received by an eligible institu- tion in repayment or realisation of loans and advances refinanced either wholly or partly by the Corporation shall, to the extent of the accommodation granted by the Corporation remaining outstanding, be deemed to have been received by the eligible institution in trust for the Corporation, and shall accordingly be paid by such eligible institution to the Corporation:
Provided also that in cases where accommodation has been granted to an eligible institution without obtaining such guarantee or security, all securities held, or which may be held, by such eligible Institution, on account of any transaction in respect of which such accommodation has been granted by the Corporation, shall be held by such eligible institu- tion in trust for the Corporation.
(4A) Nothing contained in the second proviso to sub-section (4) shall apply to any accommodation granted by the Corporation before the commencement of the Agricultural Refinance Corporation (Amend- ment) Act, 1973, to an eligible institution which was not a scheduled bank on the date on which such accommodation was granted.".
Sice. 2] THE GAZETTE OF INDIA EXTRAORDINARY 343.STATEMENT OF OBJECTS AND REASONS
The Bill seeks to amend the Agricultural Refinance Corporation Act, 1963 to enable the Agricultural Refinance Corporation to grant re- '•nance accommodation to the eligible institutions without insisting dpon security or guarantee BO that the eligible institutions coming up with schemes covering, inter alia, agricultural labourers, could be eligible for refinance from the Corporation. The proposed amendment will vest in the Board of directors of the Corporation necessary discre- tion to wajve, in suitable cases, the conditions with regard to security or guarantee.
NEW DELHI; Y. B. CHAVAN.
The 31st March, 1973.
PRESIDENT'S RECOMMENDATION UNDER ARTICLE 117 OF THE
CONSTITUTION OF INDIA
[Copy of letter No. F. 14/49/72-AC, dated the 17th April, 1973 fromi Shri Y. B. Chavan, Minister of Finance, to the Secretary, Lok Sabha.]
The President having been informed of the subject matter of the proposed Agricultural Refinance Corporation (Amendment) Bill, 1973, recommends the introduction of the Bill in the Lok Sabha under clause (1) of article 117 and its consideration under clause (3) of article HT of the Constitution.
344 THE GAZETTE OF INDIA EXTRAORDINARY [PABT II—Sue. 2]FINANCIAL MEMORANDUM
Clause 2 of the Bill seeks to amend sub-section (4) of section 22 of the Agricultural Refinance Corporation Act, 1963, and provides for un- conditional guarantee by Government as to the repayment of principal and payment of interest in respect of accommodation granted to an eligible institution by the Agricultural Refinance Corporation where security to the satisfaction of the Board is not furnished by the eligible institution or furnishing of such security or guarantee is not waived by the Board. The Central Government may, therefore, be request- ed to give guarantee in suitable cases. It is, however, not possible at this stage to anticipate when or how much liability, which is to be borne by the Central Government, would arise, nor to indicate the amount which may be involved, as the liability is contingent on in- voking of the guarantee given by the Government. If and when such liability comes to be borne by the Central Government, the same will have to be covered by appropriate budget sanction at the relevant time.
The Bill does not involve any other recurring or non-recurring expenditure.
S. L. SHAKDHER,