pledge of granted land by Govt.
Querist :
Anonymous
(Querist) 03 November 2009
This query is : Resolved
My client has been granted with agricultural properties who now wants to raise a bank loan against the security of this property, whether can he pledge that property as the same was granted by the Govt. under Saguvali Chit ?
2) whether the banks consider the same as security?
3) whether the bank has got right if the borrower fails to repay i.e. whether bank's interest is protected or not?
4) whether the bank has got more weightage if the portion of the property is converted for non-agricultural purpose (i.e. for eg. 10 cents converted out of 1.85 acres of granted land)?
5) whether any restrictions pertaining to monetary limit or any other things to mortgage or pledge the Govt. Granted land as there is non-alienation clause of 15 year from the date of grant?
Raj Kumar Makkad
(Expert) 03 November 2009
1. No such land cannot be pledged.
2. No.
3. No question arises considering first 2 answers.
4. No chance.
5. Restriction itself is a clause vide which the property itself is restricted to be pledged and no monetary question arises therein.
