Amendment status not verified — confirm the current text below against the official source.
Burden of proof. * * * * 2 STATEMENT OF OBJECTS AND REASONS I Act 2 of 1975.- The success brought about by the adoption of scientific and progressive techniques in the development of Indian Agriculture has created a new sense of awareness and enthusiasm in the farmer. It has also given him great hope. However, the new strategy in agricultural production calls for heavy capital investment. This in turn entails large capital requirements. The co- operative sector by itself may not be able to meet the demand. A multi-agency approach is inevitable if these credit requirements are to be met. The commercial banks and other credit agencies have entered enthusiastically in the field of agricultural credit. In order to enable these banks and agencies to cater to the credit requirements of as large a number of agriculturists as possible any restrictions that may tend to reduce the quantum of credit have to be removed. Simultaneously the credit agencies should be given such facilities as would enable them to increase their scope and volume of lending. The agriculturists borrowing from co-opertives have been given certain facilities. These facilities should also be intended to those agriculturists who borrow from credit agencies other than co-operatives. This is so because facilities must primarily be designed for the benefit of the individual cultivator-borrower rather than for that of the lending institution. This Bill seeks to fulfil all the requirements. The terms agriculture and agricultural purposes have been defined to encompass a vast sphaer of agrarian activity. Credit Agency has been defined to include number of lending institutions. Agriculturists have been sought to be vested with right of alienation where hitherto they were prevented from doing so to enable them to obtain loans for agriculture purposes. All institutional credit agencies engaged in purveying credit are treated on par so that none is handicapped because of special facilities or priorities provided to another. Provision has been made to simplify the procedure of registration of charge and mortgage in favour of credit agencies. The difficulties which credit agencies may have in recovering loans and other operational difficulties which they may have to face are envisaged and sought to be removed. To facilitate prompt recovery of dues without having to State Government is sought to be vested with powers to prescribe an official who shall have authority to issue a certificate for recovery of dues as arrears of land revenue. Credit agencies have been empowered to bring properties to sale and also to purchase the property if there are no bidders at auctions conducted by them whenever they are required to foreclose mortgages of property executed in their favour. Credit agencies are also enabled to finance through primary agricultural credit co-operative societies. Provision has therefore also been made to enable them to obtain the necessary information to see that the funds originally emanating from them are being properly utilised. Powers have also been sought to be vested in them to recover dues form defaulting members of co-operative societies in cases where primary societies have been assisted by the credit agencies. Hence this Bill. (Published in the Karnataka Gazetted Part IV-2A (Extraordinary) No.775 dated 8-5-1974 at pages 14-15.) 3 II Amending Act 34 of 1978.- Government enacted the Karnataka Agricultural Credit Operations and Miscellaneous Provisions Act, 1974, to assist banking, agencies in the recoveries as arrears of land revenue of loans disbursed for agricultural purpose, in order that banks would be induced to lend more freely to the agricultural sector. In the actual operation of this Act, some problems have been encountered by the commercial banks. This has affected the flow of bank money for development programmes.