The National Housing Bank Act, 1987
Administered Ministry: Ministry of Finance / Department of Financial Services
Section
Section 33 Powers and duties of auditors.
(1) The auditor of every 1[ housing finance institution which is a company] shall enquire whether or not the housing finance institution has furnished to 2[the National Housing Bank and the Reserve Bank] such statements, information or particulars relating to or connected with deposits received by it, as are required to be furnished under this Chapter, and the auditor shall, except where he is satisfied on such enquiry that the 1[housing finance institution which is a company] has furnished such statements, information or particulars, make a report to 2[the National Housing Bank and the Reserve Bank] giving the aggregate amount of such deposits held by the 1[housing finance institution which is a company].
4[(1A) The 5[Reserve Bank] may, on being satisfied that it is necessary so to do, in the public interest or in the interest of the depositors or for the purpose of proper assessment of the books of account, issue directions to any housing finance institution or any group of housing finance institutions or housing finance companies generally or to the auditors of such housing finance institution or institutions relating to balance-sheet, profit and loss account, disclosure of liabilities in the books of account or any matter relating thereto.]
(2) Where, in the case of a housing finance institution, being a company, the auditor has made, or intends to make a report to 2[the National Housing Bank and the Reserve Bank] under sub-section (1), he shall include in his report under 6[sub-section (2) of section 143 of the Companies Act, 2013 (18 of 2013)], the contents of the report which he has made, or intends to make, to 2[the National Housing Bank and the Reserve Bank].
7[(3) Where the National Housing Bank is of the opinion that it is necessary so to do in the public interest or in the interest of the housing finance institution or in the interest of the depositors of such institution, 8[it may at any time and shall, on being directed to do so by the Reserve Bank,] by order, direct that a special audit of the accounts of the housing finance institution in relation to any such transaction or class of transactions or for such period or periods, as may be specified in the order, shall be conducted and the National Housing Bank may appoint an auditor or auditors to conduct such special audit and direct the auditor or the auditors to submit the report to it.
(4) The remuneration of the auditors as may be fixed by the National Housing Bank, having regard to the nature and volume of work involved in the audit and the expenses of or incidental to the audit, shall be borne by the housing finance institution so audited.]
4[(1A) The 5[Reserve Bank] may, on being satisfied that it is necessary so to do, in the public interest or in the interest of the depositors or for the purpose of proper assessment of the books of account, issue directions to any housing finance institution or any group of housing finance institutions or housing finance companies generally or to the auditors of such housing finance institution or institutions relating to balance-sheet, profit and loss account, disclosure of liabilities in the books of account or any matter relating thereto.]
(2) Where, in the case of a housing finance institution, being a company, the auditor has made, or intends to make a report to 2[the National Housing Bank and the Reserve Bank] under sub-section (1), he shall include in his report under 6[sub-section (2) of section 143 of the Companies Act, 2013 (18 of 2013)], the contents of the report which he has made, or intends to make, to 2[the National Housing Bank and the Reserve Bank].
7[(3) Where the National Housing Bank is of the opinion that it is necessary so to do in the public interest or in the interest of the housing finance institution or in the interest of the depositors of such institution, 8[it may at any time and shall, on being directed to do so by the Reserve Bank,] by order, direct that a special audit of the accounts of the housing finance institution in relation to any such transaction or class of transactions or for such period or periods, as may be specified in the order, shall be conducted and the National Housing Bank may appoint an auditor or auditors to conduct such special audit and direct the auditor or the auditors to submit the report to it.
(4) The remuneration of the auditors as may be fixed by the National Housing Bank, having regard to the nature and volume of work involved in the audit and the expenses of or incidental to the audit, shall be borne by the housing finance institution so audited.]
1. Subs. by Act 23 of 2019, s. 161, for "housing finance institution" (w.e.f. 09-08-2019).
2. Subs. by s. 161, ibid., for "the National Housing Bank" (w.e.f. 09-08-2019).
3. Ins. by Act 15 of 2000, s. 16 (w.e.f. 12-6-2000).
4. Subs. by Act 23 of 2019, s. 161, for "National Housing Bank" (w.e.f. 09-08-2019).
5. Subs. by s. 161, ibid.,for "the National Housing Bank" (w.e.f. 09-08-2019).
6. Subs. by Act 13 of 2018, s. 170, for "sub-section (2) of section 227 of the Companies Act, 1956 (1 of 1956)" (w.e.f. 1-6-2018).
7. Ins. by Act 15 of 2000, s. 16 (w.e.f. 12-6-2000).
8. Subs. by Act 23 of 2019, s. 161, for "it may at any time" (w.e.f. 09-08-2019).
2. Subs. by s. 161, ibid., for "the National Housing Bank" (w.e.f. 09-08-2019).
3. Ins. by Act 15 of 2000, s. 16 (w.e.f. 12-6-2000).
4. Subs. by Act 23 of 2019, s. 161, for "National Housing Bank" (w.e.f. 09-08-2019).
5. Subs. by s. 161, ibid.,for "the National Housing Bank" (w.e.f. 09-08-2019).
6. Subs. by Act 13 of 2018, s. 170, for "sub-section (2) of section 227 of the Companies Act, 1956 (1 of 1956)" (w.e.f. 1-6-2018).
7. Ins. by Act 15 of 2000, s. 16 (w.e.f. 12-6-2000).
8. Subs. by Act 23 of 2019, s. 161, for "it may at any time" (w.e.f. 09-08-2019).
Section 33A Power of Reserve Bank to prohibit acceptance of deposit and alienation of assets.
1[33A. Power of Reserve Bank to prohibit acceptance of deposit and alienation of assets.-- (1) If any housing finance institution which is a company violates the provisions of any section or fails to comply with any direction or order given by the National Housing Bank or the Reserve Bank, under any of the provisions of this Chapter, the Reserve Bank may, by order, prohibit such housing finance institution from accepting any deposit.
(2) Notwithstanding anything to the contrary contained in any agreement or instrument or any law for the time being in force, the Reserve Bank on being satisfied that it is necessary so to do in the public interest or in the interest of the depositors, may direct the housing finance institution which is a company, against which an order prohibiting from accepting deposit has been issued, not to sell, transfer, create charge or mortgage or deal in any manner with its property and assets without prior written permission of the National Housing Bank for such period not exceeding six months from the date of the order.]
(2) Notwithstanding anything to the contrary contained in any agreement or instrument or any law for the time being in force, the Reserve Bank on being satisfied that it is necessary so to do in the public interest or in the interest of the depositors, may direct the housing finance institution which is a company, against which an order prohibiting from accepting deposit has been issued, not to sell, transfer, create charge or mortgage or deal in any manner with its property and assets without prior written permission of the National Housing Bank for such period not exceeding six months from the date of the order.]
1. Subs. by s. 162, ibid., for section 33A (w.e.f. 09-08-2019).
Section 33B Power of National Housing Bank to file winding up petition.
1[33B. Power of National Housing Bank to file winding up petition.--(1) The National Housing Bank, on being satisfied that a housing finance institution which is a company,--
(a) is unable to pay its debt; or
(b) has by virtue of the provisions of section 29A become disqualified to carry on the business of a housing finance institution; or
(c) has been prohibited by 2[the National Housing Bank or the Reserve Bank] from receiving deposit by an order and such order has been in force for a period of not less than three months; or
(d) the continuance of the housing finance institution is detrimental to the public interest or to the interest of depositors of the company, may file an application for winding up of such housing finance institution under the 3[Companies Act, 2013 (18 of 2013)].
(2) A housing finance institution which is a company shall be deemed to be unable to pay its debt if it has refused or has failed to meet within five working days any lawful demand made at any of its offices or branches and the National Housing Bank certifies in writing that such company is unable to pay its debt.
(3) A copy of every application made by the National Housing Bank under sub-section (1) shall be sent to 3[the Registrar of Companies and the Reserve Bank].
(4) All the provisions of the 3[Companies Act, 2013 (18 of 2013)] relating to winding up of a company shall apply to a winding up proceeding initiated on the application made by the National Housing Bank under this provision.]
(a) is unable to pay its debt; or
(b) has by virtue of the provisions of section 29A become disqualified to carry on the business of a housing finance institution; or
(c) has been prohibited by 2[the National Housing Bank or the Reserve Bank] from receiving deposit by an order and such order has been in force for a period of not less than three months; or
(d) the continuance of the housing finance institution is detrimental to the public interest or to the interest of depositors of the company, may file an application for winding up of such housing finance institution under the 3[Companies Act, 2013 (18 of 2013)].
(2) A housing finance institution which is a company shall be deemed to be unable to pay its debt if it has refused or has failed to meet within five working days any lawful demand made at any of its offices or branches and the National Housing Bank certifies in writing that such company is unable to pay its debt.
(3) A copy of every application made by the National Housing Bank under sub-section (1) shall be sent to 3[the Registrar of Companies and the Reserve Bank].
(4) All the provisions of the 3[Companies Act, 2013 (18 of 2013)] relating to winding up of a company shall apply to a winding up proceeding initiated on the application made by the National Housing Bank under this provision.]
1. Subs. by s. 162,ibid., for section 33A (w.e.f. 09-08-2019).
2. Subs. by Act 23 of 2019, s. 163, for “the National Housing Bank” (w.e.f. 09-08-2019).
3. Subs. by Act 13 of 2018, s. 171, for “Companies Act, 1956 (1 of 1956)” (w.e.f. 1-6-2018).
2. Subs. by Act 23 of 2019, s. 163, for “the National Housing Bank” (w.e.f. 09-08-2019).
3. Subs. by Act 13 of 2018, s. 171, for “Companies Act, 1956 (1 of 1956)” (w.e.f. 1-6-2018).
Section 33C Power to take action against auditors.
1ic1956033C. Power to take action against auditors.--Where any auditor fails to comply with any direction given or order made by the National Housing Bank or the Reserve Bank under section 33, the Reserve Bank may, after giving a reasonable opportunity of being heard, remove or debar the auditor from exercising the duties as auditor of any of the Reserve Bank regulated entities for a maximum period of three years, at a time.ic19563
1. Ins. by Act 18 of 2023, s. 2 and Schedule (w.e.f. 22-01-2024)
Section 34 Inspection.
(1) The National Housing Bank may, 1[at any timeor on being directed so to do by the Reserve Bank, shall], cause an inspection to be made by one or more of its officers or employees or other persons (hereafter in this section referred to as the inspecting authority) of any 2[housing finance institution which is a company], for the purpose of verifying the correctness or completeness of any statement, information or particulars furnished to the National Housing Bank or for the purpose of obtaining any information or particulars which the housing finance institution has failed to furnish on being called upon to do so.
(2) It shall be the duty of every director or member of any committee or other body or any person for the time being vested with the management of the whole or part of the affairs of every housing finance institution accepting deposits or other officer or employee thereof to produce to the inspecting authority all such books, accounts and other documents in his custody or power and to furnish that authority with any statement and information relating to the business of the institution as that authority may require of him, within such time as may be specified by that authority.
(3) The inspecting authority may examine on oath any director or member of any committee or body or any other person for the time being vested with the management of the affairs of the housing finance institution, accepting deposits, or any officer or employee thereof, in relation to its business.
3[(4) The National Housing Bank shall submit a copy of the report of inspection referred to in sub-section (1) to the Reserve Bank.]
(2) It shall be the duty of every director or member of any committee or other body or any person for the time being vested with the management of the whole or part of the affairs of every housing finance institution accepting deposits or other officer or employee thereof to produce to the inspecting authority all such books, accounts and other documents in his custody or power and to furnish that authority with any statement and information relating to the business of the institution as that authority may require of him, within such time as may be specified by that authority.
(3) The inspecting authority may examine on oath any director or member of any committee or body or any other person for the time being vested with the management of the affairs of the housing finance institution, accepting deposits, or any officer or employee thereof, in relation to its business.
3[(4) The National Housing Bank shall submit a copy of the report of inspection referred to in sub-section (1) to the Reserve Bank.]
1. Subs. by Act 23 of 2019, s.164, for "at any time" (w.e.f. 09-08-2019).
2. Subs. by s. 164, ibid., for "housing finance institution accepting deposits" (w.e.f. 09-08-2019).
3. Ins. by s. 164, ibid. (w.e.f. 09-08-2019).
2. Subs. by s. 164, ibid., for "housing finance institution accepting deposits" (w.e.f. 09-08-2019).
3. Ins. by s. 164, ibid. (w.e.f. 09-08-2019).
Section 35 Deposits not to be solicited by unauthorised persons.
-- No person shall solicit on behalf of any 1[housing finance institution] either by publishing or causing to be published any prospectus or advertisement or in any other manner deposits of money from the public unless--
(a) he has been authorised in writing by the said housing finance institution to do so and specifies the name of the institution which has so authorised him; and
(b) the prospectus or advertisement complies with any order made by the 1[National Housing Bank] under section 30 and with any other provision of law for the time being in force applicable to the publication of such prospectus or advertisement.
(a) he has been authorised in writing by the said housing finance institution to do so and specifies the name of the institution which has so authorised him; and
(b) the prospectus or advertisement complies with any order made by the 1[National Housing Bank] under section 30 and with any other provision of law for the time being in force applicable to the publication of such prospectus or advertisement.
1. Subs. by s. 165, ibid., for "housing finance institution" (w.e.f. 09-08-2019).
2. Subs. by s. 165, ibid., for "National Housing Bank" (w.e.f. 09-08-2019).
2. Subs. by s. 165, ibid., for "National Housing Bank" (w.e.f. 09-08-2019).
Section 35A Disclosure of information.
1[35A. Disclosure of information.-- (1) Any information relating to a 2[housing finance institution which is a company],--
(a) contained in any statement or return submitted by such institution under the provisions of this Chapter; or
(b) obtained through audit or inspection or otherwise by 3[the National Housing Bank or the Reserve Bank, as the case may be,] shall be treated as confidential and shall not, except otherwise provided in this section, be disclosed.
(2) Nothing in this section shall apply to--
(a) the disclosure by any 2[housing finance institution which is a company], with the previous permission of 3[the National Housing Bank or the Reserve Bank, as the case may be], of any information furnished to 3[the National Housing Bank or the Reserve Bank, as the case may be] under sub-section (1);
(b) the publication by 4[the National Housing Bank or the Reserve Bank, as the case may be], if it considers necessary in the public interest so to do, of any information collected by it under sub-section (1) in such consolidated form as it may think fit without disclosing the name of any 5[housing finance institution which is a company] or its borrowers;
(c) the disclosure by the 5[housing finance institution which is a company] or by 4[the National Housing Bank or the Reserve Bank, as the case may be] of any such information to any other 5[housing finance institution which is a company] or in accordance with the practice and usage customary amongst such institutions or as permitted or required under any other law:
Provided that any such information received by a 5[housing finance institution which is a company] under this clause shall not be published except in accordance with the practice and usage customary amongst institutions or as permitted or required under any other law.
(3) Notwithstanding anything contained in this Act or in any other law for the time being in force, 3[the National Housing Bank or the Reserve Bank, as the case may be], if it is satisfied that, in the public interest or in the interest of the depositors or the 4[housing finance institution which is a company] or to prevent the affairs of any 4[housing finance institution which is a company] being conducted in a manner detrimental to the interest of the depositors, it is expedient so to do, may, either on its own motion or on being requested, furnish or communicate any information relating to the conduct of business by any 4[housing finance institution which is a company] to any authority constituted under any law.
(4) Notwithstanding anything contained in any other law for the time being in force, no court or tribunal or other authority shall compel 3[the National Housing Bank or the Reserve Bank, as the case may be] to produce or to give inspection of any statement or other material obtained by 3[the National Housing Bank or the Reserve Bank, as the case may be] under any provision of this Chapter.]
(a) contained in any statement or return submitted by such institution under the provisions of this Chapter; or
(b) obtained through audit or inspection or otherwise by 3[the National Housing Bank or the Reserve Bank, as the case may be,] shall be treated as confidential and shall not, except otherwise provided in this section, be disclosed.
(2) Nothing in this section shall apply to--
(a) the disclosure by any 2[housing finance institution which is a company], with the previous permission of 3[the National Housing Bank or the Reserve Bank, as the case may be], of any information furnished to 3[the National Housing Bank or the Reserve Bank, as the case may be] under sub-section (1);
(b) the publication by 4[the National Housing Bank or the Reserve Bank, as the case may be], if it considers necessary in the public interest so to do, of any information collected by it under sub-section (1) in such consolidated form as it may think fit without disclosing the name of any 5[housing finance institution which is a company] or its borrowers;
(c) the disclosure by the 5[housing finance institution which is a company] or by 4[the National Housing Bank or the Reserve Bank, as the case may be] of any such information to any other 5[housing finance institution which is a company] or in accordance with the practice and usage customary amongst such institutions or as permitted or required under any other law:
Provided that any such information received by a 5[housing finance institution which is a company] under this clause shall not be published except in accordance with the practice and usage customary amongst institutions or as permitted or required under any other law.
(3) Notwithstanding anything contained in this Act or in any other law for the time being in force, 3[the National Housing Bank or the Reserve Bank, as the case may be], if it is satisfied that, in the public interest or in the interest of the depositors or the 4[housing finance institution which is a company] or to prevent the affairs of any 4[housing finance institution which is a company] being conducted in a manner detrimental to the interest of the depositors, it is expedient so to do, may, either on its own motion or on being requested, furnish or communicate any information relating to the conduct of business by any 4[housing finance institution which is a company] to any authority constituted under any law.
(4) Notwithstanding anything contained in any other law for the time being in force, no court or tribunal or other authority shall compel 3[the National Housing Bank or the Reserve Bank, as the case may be] to produce or to give inspection of any statement or other material obtained by 3[the National Housing Bank or the Reserve Bank, as the case may be] under any provision of this Chapter.]
1. Ins. by Act 15 of 2000, s. 18 (w.e.f. 12-6-2000).
2. Subs. by Act 23 of 2019, s. 166, for "housing finance institution" (w.e.f. 09-08-2019).
3. Subs. by s. 166, ibid., for "the National Housing Bank" (w.e.f. 09-08-2019).
4. Subs. by Act 23 of 2019, s. 166, for "the National Housing Bank" (w.e.f. 09-08-2019).
5. Subs. by s. 166, ibid., for "housing finance institution" (w.e.f. 09-08-2019).
2. Subs. by Act 23 of 2019, s. 166, for "housing finance institution" (w.e.f. 09-08-2019).
3. Subs. by s. 166, ibid., for "the National Housing Bank" (w.e.f. 09-08-2019).
4. Subs. by Act 23 of 2019, s. 166, for "the National Housing Bank" (w.e.f. 09-08-2019).
5. Subs. by s. 166, ibid., for "housing finance institution" (w.e.f. 09-08-2019).
Section 35B Power of Reserve Bank to exempt housing finance institution
1[35B. Power of Reserve Bank to exempt housing finance institution.-- (1) The Reserve Bank, on being satisfied that it is necessary so to do, may declare by notification that all or any of the provisions of this Chapter shall not apply to a housing finance institution which is a company or a group of such housing finance institutions either generally or for such period as may be specified, subject to such conditions, limitations or restrictions as it may think fit to impose.
(2) Every notification made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.]
(2) Every notification made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.]
1. Subs. by s. 167, ibid., for section 35B (w.e.f. 09-08-2019).
Section 36 Chapter V to override other laws.
The provisions of this Chapter shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law.
Section 36A Power to order repayment of deposit.
1[36A. Power to order repayment of deposit.--(1) Every deposit accepted by a housing finance institution which is a company unless renewed, shall be repaid in accordance with the terms and conditions of such deposit.
(2) Where a housing finance institution which is a company has failed to repay any deposit or part thereof in accordance with the terms and conditions of such deposit, such officer of the National Housing Bank, as may be authorised by the Central Government for the purpose of this section (hereinafter referred to as the "authorised officer") may, if he is satisfied, either on his own motion or on any application of the depositor, that it is necessary so to do to safeguard the interests of the housing finance institution, the depositors or in the public interest, direct, by order, such housing finance institution to make repayment of such deposit or part thereof forthwith or within such time and subject to such conditions as may be specified in the order:
Provided that the authorised officer may, before making any order under this sub-section, give a reasonable opportunity of being heard to the housing finance institution and the other persons interested in the matter.]
(2) Where a housing finance institution which is a company has failed to repay any deposit or part thereof in accordance with the terms and conditions of such deposit, such officer of the National Housing Bank, as may be authorised by the Central Government for the purpose of this section (hereinafter referred to as the "authorised officer") may, if he is satisfied, either on his own motion or on any application of the depositor, that it is necessary so to do to safeguard the interests of the housing finance institution, the depositors or in the public interest, direct, by order, such housing finance institution to make repayment of such deposit or part thereof forthwith or within such time and subject to such conditions as may be specified in the order:
Provided that the authorised officer may, before making any order under this sub-section, give a reasonable opportunity of being heard to the housing finance institution and the other persons interested in the matter.]
1. Ins. by Act 15 of 2000, s. 19 (w.e.f. 12-6-2000).
Section 36B Nomination by depositors.
1[36B. Nomination by depositors.--(1) Where a deposit is held by a housing finance institution to the credit of one or more persons, the depositor or, as the case may be, all the depositors together may nominate, in the manner prescribed by rules made by the Central Government under section 45ZA of the Banking Regulation Act, 1949 (10 of 1949) one person to whom in the event of the death of the sole depositor or the death of all the depositors, the amount of deposit may be returned by the housing finance institution.
(2) Notwithstanding anything contained in any other law for the time being in force, or in any deposition, whether testamentary or otherwise, in respect of such deposit, where a nomination made purports to confer on any person the right to receive the amount of deposit from the housing finance institution, the nominee shall, on the death of the sole depositor or, as the case may be, on the death of all the depositors, become entitled to all the rights of the sole depositor or, as the case may be, of the depositors, in relation to such deposit to the exclusion of all other persons, unless the nomination is varied or cancelled in the manner prescribed by rules made by the Central Government under section 45ZA of the Banking Regulation Act, 1949 (10 of 1949).
(3) Where the nominee is a minor, it shall be lawful for the depositor making the nomination to appoint, in the manner prescribed by rules made by the Central Government under section 45ZA of the Banking Regulation Act, 1949 (10 of 1949), any person to receive the amount of deposit in the event of his death during the minority of the nominee.
(4) Payment by a housing finance institution in accordance with the provisions of this section shall constitute a full discharge to the housing finance institution of its liability in respect of the deposit:
Provided that nothing contained in this sub-section shall affect the right or claim which any person may have against the person to whom any payment is made under this section.
(5) No notice of the claim of any person, other than the person or persons in whose name a deposit is held by the housing finance institution, shall be receivable by the housing finance institution, nor shall the housing finance institution be bound by any such notice even though expressly given to it:
Provided that where any decree, order, certificate or other authority from a court of competent jurisdiction relating to such deposit is produced before a housing finance institution, the housing finance institution shall take due note of such decree, order, certificate or other authority.]
(2) Notwithstanding anything contained in any other law for the time being in force, or in any deposition, whether testamentary or otherwise, in respect of such deposit, where a nomination made purports to confer on any person the right to receive the amount of deposit from the housing finance institution, the nominee shall, on the death of the sole depositor or, as the case may be, on the death of all the depositors, become entitled to all the rights of the sole depositor or, as the case may be, of the depositors, in relation to such deposit to the exclusion of all other persons, unless the nomination is varied or cancelled in the manner prescribed by rules made by the Central Government under section 45ZA of the Banking Regulation Act, 1949 (10 of 1949).
(3) Where the nominee is a minor, it shall be lawful for the depositor making the nomination to appoint, in the manner prescribed by rules made by the Central Government under section 45ZA of the Banking Regulation Act, 1949 (10 of 1949), any person to receive the amount of deposit in the event of his death during the minority of the nominee.
(4) Payment by a housing finance institution in accordance with the provisions of this section shall constitute a full discharge to the housing finance institution of its liability in respect of the deposit:
Provided that nothing contained in this sub-section shall affect the right or claim which any person may have against the person to whom any payment is made under this section.
(5) No notice of the claim of any person, other than the person or persons in whose name a deposit is held by the housing finance institution, shall be receivable by the housing finance institution, nor shall the housing finance institution be bound by any such notice even though expressly given to it:
Provided that where any decree, order, certificate or other authority from a court of competent jurisdiction relating to such deposit is produced before a housing finance institution, the housing finance institution shall take due note of such decree, order, certificate or other authority.]
1. Ins. by Act 15 of 2000, s. 19 (w.e.f. 12-6-2000).
Section 36C Definitions.
1[36C. Definitions.--In this Chapter, unless the context otherwise requires,--
(a) "Appellate Tribunal" means the Appellate Tribunal established under section 36-I;
(b) "approved institution" means--
(i) a housing finance institution which has been granted a certificate of registration under sub-section (5) of section 29A;
(ii) a scheduled bank;
(iii) National Housing Bank acting as trustee or otherwise in a transaction of securitisation of housing mortgages undertaken by the National Housing Bank;
(iv) such other institutions as the Central Government may, on the recommendation of the National Housing Bank, by notification, specify;
(c) "assistance" means any direct or indirect financial assistance granted, by an approved institution during the course of any housing finance activity undertaken by it;
(d) "borrower" means any person to whom any assistance has been given by an approved institution for the purposes of purchase, construction, repairs, extension or renovation of a residential house;
(e) "dues" means any liability which is claimed as due from any person by an approved institution and includes interest, costs, charges and other amount payable in relation thereto;
(f) "recovery officer" means an officer appointed under section 36D.]
(a) "Appellate Tribunal" means the Appellate Tribunal established under section 36-I;
(b) "approved institution" means--
(i) a housing finance institution which has been granted a certificate of registration under sub-section (5) of section 29A;
(ii) a scheduled bank;
(iii) National Housing Bank acting as trustee or otherwise in a transaction of securitisation of housing mortgages undertaken by the National Housing Bank;
(iv) such other institutions as the Central Government may, on the recommendation of the National Housing Bank, by notification, specify;
(c) "assistance" means any direct or indirect financial assistance granted, by an approved institution during the course of any housing finance activity undertaken by it;
(d) "borrower" means any person to whom any assistance has been given by an approved institution for the purposes of purchase, construction, repairs, extension or renovation of a residential house;
(e) "dues" means any liability which is claimed as due from any person by an approved institution and includes interest, costs, charges and other amount payable in relation thereto;
(f) "recovery officer" means an officer appointed under section 36D.]
1. Ins. by Act 15 of 2000, s. 20 (w.e.f. 12-6-2000).
Section 36D Appointment of recovery officer.
1[36D. Appointment of recovery officer.--(1) The Central Government may, in consultation with the National Housing Bank, by notification appoint such persons being the officers of the approved institution, as it may deem fit, to be recovery officers for the purpose of this Chapter who shall have such qualifications as the Central Government may by rules made under this Act specify.
(2) The local limits within which the recovery officer shall exercise the powers conferred and perform the duties imposed on by or under this Chapter shall be such as may be specified by the Central Government by notification.]
(2) The local limits within which the recovery officer shall exercise the powers conferred and perform the duties imposed on by or under this Chapter shall be such as may be specified by the Central Government by notification.]
1. Ins. by Act 15 of 2000, s. 20 (w.e.f. 12-6-2000).
Section 36E Application to the recovery officer.
1[36E. Application to the recovery officer.--(1) Where any borrower, who is under a liability to an approved institution under an agreement, makes any default in repayment of any assistance or any instalment thereof or otherwise fails to comply with the terms of said agreement, then, without prejudice to the provisions of section 69 of the Transfer of Property Act, 1882 (4 of 1882), the approved institution may apply, to the recovery officer within the limits of whose jurisdiction the borrower actually and voluntarily resides, or carries on business, or personally works for gain, or the cause of action wholly or in part arises, for the sale of the property pledged, mortgaged, hypothecated or assigned to the approved institution as security for the dues.
(2) Where an approved institution, which has to recover its dues from any borrower, has filed an application to the recovery officer under sub-section (1) and the same property is also pledged, mortgaged, hypothecated or assigned to another approved institution or person, the other approved institution or person may join the approved institution at any stage of the proceedings, before the final order is passed, by making an application to that recovery officer.
(3) In the application under sub-section (1) or sub-section (2), the nature and extent of the liability of the borrower to the approved institution or person, the grounds on which it is made shall be stated and it be in such form and be accompanied by such documents or other evidence as may be prescribed.]
(2) Where an approved institution, which has to recover its dues from any borrower, has filed an application to the recovery officer under sub-section (1) and the same property is also pledged, mortgaged, hypothecated or assigned to another approved institution or person, the other approved institution or person may join the approved institution at any stage of the proceedings, before the final order is passed, by making an application to that recovery officer.
(3) In the application under sub-section (1) or sub-section (2), the nature and extent of the liability of the borrower to the approved institution or person, the grounds on which it is made shall be stated and it be in such form and be accompanied by such documents or other evidence as may be prescribed.]
1. Ins. by Act 15 of 2000, s. 20 (w.e.f. 12-6-2000).
Section 36F Procedure in respect of application under section 36E.
1[36F. Procedure in respect of application under section 36E.--(1) On receipt of an application under section 36E, if the recovery officer is of opinion that the borrower is under a liability to an approved institution under an agreement, or has made default in repayment of the assistance or any instalment thereof or has otherwise failed to comply with the terms of said agreement, he shall cause a written notice of demand in such form as may be prescribed to be served on the borrower, calling upon him to pay the amount specified in the notice within a period of ninety days from the date of service thereof or to show cause as to why the relief prayed for should not be granted.
(2) The recovery officer may after giving the applicant and the borrower an opportunity of being heard, pass such interim or final order, including the order for payment of interest from the date on or before which payment of the amount is found due up to the date of realisation or actual payment, on the application as it thinks fit to meet the ends of justice.
(3) The recovery officer may also consider and if satisfied, allow any claim of set-off or counterclaim set up by the borrower against the approved institution or person.
(4) The recovery officer shall supply a copy of every order passed by it to the approved institution and the borrower.
(5) The recovery officer may make an interim order (whether by way of injunction or stay or attachment) against the borrower to debar him from transferring, alienating or otherwise dealing with or disposing of, any property which is pledged, mortgaged, hypothecated or assigned to the approved institution as security for the dues.
(6) The application made to the recovery officer under section 36E shall be dealt with by him as expeditiously as possible and endeavour shall be made by him to dispose of the application finally within six months from the date of receipt of the application.]
(2) The recovery officer may after giving the applicant and the borrower an opportunity of being heard, pass such interim or final order, including the order for payment of interest from the date on or before which payment of the amount is found due up to the date of realisation or actual payment, on the application as it thinks fit to meet the ends of justice.
(3) The recovery officer may also consider and if satisfied, allow any claim of set-off or counterclaim set up by the borrower against the approved institution or person.
(4) The recovery officer shall supply a copy of every order passed by it to the approved institution and the borrower.
(5) The recovery officer may make an interim order (whether by way of injunction or stay or attachment) against the borrower to debar him from transferring, alienating or otherwise dealing with or disposing of, any property which is pledged, mortgaged, hypothecated or assigned to the approved institution as security for the dues.
(6) The application made to the recovery officer under section 36E shall be dealt with by him as expeditiously as possible and endeavour shall be made by him to dispose of the application finally within six months from the date of receipt of the application.]
1. Ins. by Act 15 of 2000, s. 20 (w.e.f. 12-6-2000).
Section 36G Enforcement of order of recovery officer.
1[36G. Enforcement of order of recovery officer.--(1) Where the borrower refuses or fails to comply with the order within the time specified therein the recovery officer may, take possession of any property pledged, mortgaged, hypothecated or assigned to the approved institution as security for any assistance in respect of which default has been made and transfer by way of sale, lease or otherwise such property.
(2) Any transfer by way of sale, lease or otherwise under this section shall be conducted in such manner as may be prescribed.
(3) Any transfer of property made by the recovery officer, in exercise of its powers under subsection (1), shall vest in the transferee all rights in or to the property transferred, as if the transfer has been made by the owner of the property.
(4) Where any action has been taken against the borrower under the provisions of sub-section (1), all costs, charges, expenses which in the opinion of the recovery officer have been properly incurred by him as incidental thereto, shall be recoverable from the borrower and the money which is received by it shall, in the absence of any contract to the contrary, be held by it in trust to be applied firstly, in payment of such costs, charges and expenses and secondly, in discharge of debt, due to the approved institution, and the residue of the money so received shall be paid to the person entitled thereto.
(5) If the dues of the approved institution, together with all costs, charges and expenses incurred by the recovery officer, are tendered to the approved institution or to the recovery officer at any time before the date fixed for sale or transfer, the property shall not be sold or transferred, and no further steps shall be taken for transfer or sale of that property.]
(2) Any transfer by way of sale, lease or otherwise under this section shall be conducted in such manner as may be prescribed.
(3) Any transfer of property made by the recovery officer, in exercise of its powers under subsection (1), shall vest in the transferee all rights in or to the property transferred, as if the transfer has been made by the owner of the property.
(4) Where any action has been taken against the borrower under the provisions of sub-section (1), all costs, charges, expenses which in the opinion of the recovery officer have been properly incurred by him as incidental thereto, shall be recoverable from the borrower and the money which is received by it shall, in the absence of any contract to the contrary, be held by it in trust to be applied firstly, in payment of such costs, charges and expenses and secondly, in discharge of debt, due to the approved institution, and the residue of the money so received shall be paid to the person entitled thereto.
(5) If the dues of the approved institution, together with all costs, charges and expenses incurred by the recovery officer, are tendered to the approved institution or to the recovery officer at any time before the date fixed for sale or transfer, the property shall not be sold or transferred, and no further steps shall be taken for transfer or sale of that property.]
1. Ins. by Act 15 of 2000, s. 20 (w.e.f. 12-6-2000).
Section 36H Chief Metropolitan Magistrate and District Magistrate to assist recovery officer in taking charge of property
1[36H. Chief Metropolitan Magistrate and District Magistrate to assist recovery officer in taking charge of property.--(1) Where any property is sold or leased in pursuance of any power conferred by section 36E, the recovery officer may, for the purpose of taking into custody or under control any such property, request, in writing, the Chief Metropolitan Magistrate or the District Magistrate within whose jurisdiction any such property or other documents relating thereto may be situated or found to take possession thereof, and the Chief Metropolitan Magistrate or as the case may be, the District Magistrate shall, on such request being made to him,--
(a) take possession of such property and documents relating thereto; and
(b) forward them to the recovery officer.
(2) For the purpose of securing compliance with the provisions of sub-section (1), the Chief Metropolitan Magistrate or the District Magistrate may take or cause to be taken such steps and use, or cause to be used, such force, as may, in his opinion, be necessary.
(3) No act of the Chief Metropolitan Magistrate or the District Magistrate done in pursuance of this section shall be called in question in any court or before any authority.]
(a) take possession of such property and documents relating thereto; and
(b) forward them to the recovery officer.
(2) For the purpose of securing compliance with the provisions of sub-section (1), the Chief Metropolitan Magistrate or the District Magistrate may take or cause to be taken such steps and use, or cause to be used, such force, as may, in his opinion, be necessary.
(3) No act of the Chief Metropolitan Magistrate or the District Magistrate done in pursuance of this section shall be called in question in any court or before any authority.]
1. Ins. by Act 15 of 2000, s. 20 (w.e.f. 12-6-2000).
Section 36-I Establishment of Appellate Tribunal.
1[36-I. Establishment of Appellate Tribunal.--(1) The Central Government shall, by notification, establish one or more Appellate Tribunals, to be known as the Housing Finance Institutions Debt Recovery Appellate Tribunals, to exercise the jurisdiction, powers and authority conferred on such Tribunal by or under this Act.
(2) The Central Government shall also specify in the notification referred to in sub-section (1), the areas in relation to which the Appellate Tribunal may exercise jurisdiction.
(3) Notwithstanding anything contained in sub-sections (1) and (2), the Central Government may authorise the Presiding Officer of an Appellate Tribunal to discharge also the functions of the Presiding Officer of other Appellate Tribunal.]
(2) The Central Government shall also specify in the notification referred to in sub-section (1), the areas in relation to which the Appellate Tribunal may exercise jurisdiction.
(3) Notwithstanding anything contained in sub-sections (1) and (2), the Central Government may authorise the Presiding Officer of an Appellate Tribunal to discharge also the functions of the Presiding Officer of other Appellate Tribunal.]
1. Ins. by Act 15 of 2000, s. 20 (w.e.f. 12-6-2000).
Section 36J Composition of Appellate Tribunal.
1[36J. Composition of Appellate Tribunal.--An Appellate Tribunal shall consist of one person only (hereinafter referred to as the Presiding Officer of the Appellate Tribunal) to be appointed, by notification, by the Central Government.]
1. Ins. by Act 15 of 2000, s. 20 (w.e.f. 12-6-2000).
Section 36K Qualifications for appointment as Presiding Officer of Appellate Tribunal.
1[36K. Qualifications for appointment as Presiding Officer of Appellate Tribunal.--A person shall not be qualified for appointment as the Presiding Officer of an Appellate Tribunal, unless he--
(a) is, or has been, or is qualified to be a District Judge;
(b) has been a Member of the Indian Legal Service and has held a post in Grade II of that Service for at least three years.]
(a) is, or has been, or is qualified to be a District Judge;
(b) has been a Member of the Indian Legal Service and has held a post in Grade II of that Service for at least three years.]
1. Ins. by Act 15 of 2000, s. 20 (w.e.f. 12-6-2000).