Limitation on mortgage of raiyati plots of land ~ LLBH

Limitation on mortgage of raiyati plots of land

Under Section 7 of the West Bengal Land Reforms Act , 1955 , a raiyat has been given the right to mortgage of his plot of land or any share thereof only in three types of mortgages, such as - (1) Simple mortgage,

(2) Usufructuary mortgage for a period not exceeding 15 years, and

(3) Mortgage by deposit of title deeds.

Section 7(1).--

A mortgage by a raiyat of his plot of land or any share thereof other than—

(a) a simple mortgage, or

(b) a usufructuary mortgage for a period not exceeding fifteen years, or

(i) a scheduled bank as defined in the Reserve Bank of India Act, 1934 (2 of 1934), or

(ii) a co-operative land mortgage bank registered or deemed to be registered under any law for the time being in force, or

(iii) a public financial institution referred to in section 4A of the Companies Act, 1956 (1 of 1956), or

(iv) a corporation owned or controlled by the Central Government or the State Government or by both the Central Government and the State Government, or

(v) the International Finance Corporation established under the Agreement as defined in clause (a) of section 2 of the International Finance Corporation (Status, Immunities and Privileges) Act, 1958 (42 of 1958), or

(vi) such other financial institution, by whatever name called, established or registered under any law for the time being in force, as the State Government or the Central Government may, by notification in the Official Gazette, specify, for the purpose of obtaining loan or financial assistance (including debenture as defined in clause (12) of section 2 of the Companies Act, 1956) for the development of the land comprised in the plot of land of such raiyat or for the improvement of any agricultural production (including horticulture or fishery) or for the development or improvement of any plantation or for the establishment or development of any industry, livestock breeding, dairy, poultry farming, commercial unit, educational centre, health centre, public recreation centre or research centre upon such land or for the promotion and plot of land of sports or cultural or philanthropical activity upon such land or for the construction of any housing estate for bona fide residential purpose or any building for providing accommodation for any office upon such land or for such other activity as the State Government may, by notification in the Official Gazette, specify, shall be void.

A raiyat can create a mortgage by deposit of title deeds for the purpose of obtaining loan or financial assistance in respect of the following specified purposes:

(1) for the development of the plot of land,

(2) for the improvement of any agricultural production, including Horticulture or fishery, or (3) for the development or improvement of any plantation,

(4) for the establishment or development of any industry, livestock breeding, Dairy, poultry farming, commercial unit, Educational Centre ,Health Centre ,public recreation centre or Research Centre or

(5) for the promotion of sports or cultural or philanthropical activity, or

(6) for the construction of any housing estate for Bona fide residential purpose or any building for providing accommodation for any office, or

(7) for such other activity as the state government may specify by notification in the Official Gazette.