Housing is a basic need and serves to fulfill the fundamental objective of providing shelter. The existing institutional framework for providing housing finance is yet to develop fully. It is. therefore, necessary to create a housing finance structure through establishment of appropriate institutions at various levels which would mobilise resources and promote housing activity. 2. A high level group which looked into the problem, recommended that a National Housing Bank be established as an apex housing financial institution to function as the principal agency for the promotion of housing finance institutions at various levels, to co-ordinate the activities of these institutions, to promote mobilisation of resources for housing and to extend financial support to the housing finance institutions. 3. The Bill seeks to provide for the establishment of a National Housing Bank with a view to give effect to the aforesaid recommendations of the high level group. In addition the National Housing Bank will also plan a role in the formulation of policies designed to promote housing in the country and provide guidelines for the working of all the agencies connected with housing. 4. The Notes and clauses appended to the Bill explain the provisions of the Bill. -Gaz. of bid., 28-8-87, Pt. II. S. 2, Ext. p. 32 (No. 34). Prefatory Note—Statement of Objects and Reasons.—The National Housing Bank was established in July, 1988 under the National Housing Bank Act, 1987 to operate as a principal agency to promote housing finance institutions both at local and regional levels and to provide financial and other support to such institutions and for matters connected therewith or incidental thereto. To meet the objectives aforesaid, the National Housing Bank was also conferred powers to regulate the deposit acceptance activities of the housing finance institutions similar to those available to Reserve Bank of India in respect of non-banking financial companies. The powers of the Reserve Bank of India to control the activities of non-banking financial companies were further strengthened by the Reserve Bank of India (Amendment) Act, 1997. The housing finance companies which are sub-set of non-banking financial companies were exempted from the provisions of the Reserve Bank of India Act, as amended in 1997, for the reason that such companies fall under the regulatory frame work of the National Housing Bank. Thus there arose the necessity to confer powers on the National Housing Bank similar to those available to the Reserve Bank of India after the above amendment. These proposed provisions will enable the National Housing Bank to safeguard the interest of depositors and promote healthy and universal growth of housing finance companies in the country. 2. Housing loans are generally of long term duration and consequently the funds of housing finance institutions get locked up in mortgages. There is need to augment their capacity to provide more finance by adopting asset securitisation and development of a secondary mortgage market in the country. The National Housing Bank, being the principal agency in the field of housing finance, is being entrusted with the responsibility to develop such market in housing mortgages in the country, 3. There has been a long standing demand from the housing finance institutions for a speedier method of recovery of dues from the defaulting borrowers. It is proposed to provide for a simple, speedy and cost effective method of recovery of overdues by the housing finance institutions by providing for the sale of property charged as security for the assistance granted by such institutions through recovery officers. A provision is also being made for establishment of Appellate Tribunal to hear appeal against the decision of recovery officer. 4. With the introduction of economic reforms, it has been considered necessary to enlarge the capital and shareholder's base of the National Housing Bank. Consequently, it is proposed to provide for enhancement of the authorised capital of the National Housing Bank to rupees three hundred fifty crores with an enabling provision for further increase up to rupees two thousand crores. It is also proposed that the National Housing Bank may offer its shareholding to institutions, besides the Reserve Bank of India, in such manner that the Reserve Bank of India, the Central Government, public sector banks, public financial institutions or other institutions owned or controlled by the Central Government, shall in aggregate at any time hold not less than fifty-one per cent of the issued capital of the National Housing Bank. It is also proposed to provide for restructuring of the Board of Director of the National Housing Bank. 5. In the light of the experience gained in the operations of the National Housing Bank since its establishment, it is felt necessary to bring certain amendments to the said Act for the smooth working of the National Housing Bank and to authorise it to undertake certain additional business of financing of agricultural and rural development banks, making of loans and advances for residential township-cum-housing development projects, undertaking securitisation of loans, setting up of mutual fund and undertaking or participating in housing mortgage insurance business. 6. The Bill seeks to achieve the aforesaid object.
An Act to establish a bank to be known as the National Housing Bank to operate as a principal agency to promote housing finance institutions both at local and regional levels and to provide financial and other support to such institutions and for matters connected therewith or incidental thereto. Be it enacted by Parliament in the Thirty eighth Year of the Republic of India as follows:-
SECTION 01: SHORT TITLE, EXTENT AND COMMENCEMENT
(1) This Act may be called the National Housing Bank Act, 1987.
(2) It extends to the whole of India.
(3) It shall come into force on such date1as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and any reference in any provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.
SECTION 02: DEFINITIONS
In this Act. unless the context otherwise requires:-
(a) "Board" means the Board of Directors of the National Housing Bank referred to in section 6;
(b) "Chairman" means the Chairman of the Board appointed under section 6;
(c) "director" means a director appointed under section 6-;
(d) "housing finance institution" includes every institution, whether incorporated or not, which primarily transacts or has as its principal object, the transacting of the business of providing finance for housing, whether directly or indirectly;
(e) "Managing Director" means the Managing Director appointed under section 6-;
(f) "National Housing Bank" means the National Housing Bank established under section 3-;
(g) "notification" means a notification published in the Official Gazette,
(h) "Prescribed" means prescribed by regulations made under this Act;
(i) "Reserve Bank" means the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934;
(j) words and expressions used herein and not defined but defined in the Reserve Bank of India Act, 1934, shall have the meanings respectively assigned to them in that Act;
(k) words and expressions used herein and not defined either in this Act or in the Reserve Bank of India Act 1934, but defined in the Banking Regulation Act, 1949, shall have the meanings respectively assigned to them in the Banking Regulation Act, 1949.
SECTION 03: ESTABLISHMENT AND INCORPORATION OF NATIONAL HOUSING BANK
(1) With effect from such date2as the Central Government may, by notification, appoint, there shall be established for the purposes of this Act, a bank to be known as the National Housing Bank.
(2) the National Housing Bank shall be a body corporate with the name aforesaid having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract, and may, by that name, sue and be sued.
(3) The head office of the National Housing Bank shall be at Bombay or at such other place as the Reserve Bank may, by notification, specify.
(4) The National Housing Bank may establish offices, branches or agencies at any place in India, and with the previous approval of the Reserve Bank, at any place outside India.
SECTION 04: CAPITAL
The authorised and paid up capital of the National Housing Bank shall be one hundred crores of rupees and shall be subscribed by the Reserve Bank. Provided that the Central Government may in consultation with the Reserve Bank, by notification, increase the said capital up to five hundred crores of rupees and the capital so increased shall also be subscribed by the Reserve Bank.
SECTION 05: MANAGEMENT
(1) The general superintendence, direction and management of the affairs and business of the National Housing Bank shall vest in the Board of Directors, which shall exercise all powers, and do all. acts and things, which may be exercised or dene by the National Housing Bank.
(2) subject to the provisions of this Act, the Board, in discharging its functions, shall act on business principles with due regard to public interest.
(3) Subject to the provisions of sub-section (1) and save as otherwise provided in the regulations made under this Act,-
(a) the Chairman, if he is holding offices both as the Chairman and the Managing Director, or
(b) the Managing Director, if the Chairman is absent, shall also have powers of general superintendence, direction and management of the affairs and business of the National Housing Bank and may also exercise all powers and do all acts and things which may be exercised or done by the National Housing Bank and shall act on business principles with the due regard to public interest.
(4) The Managing Director shall, in the discharge of his powers and functions, follow such directions as the Chairman may give.
(5) In the discharge of its functions under this Act, the National Housing Bank shall be guided by such directions in matters of policy involving public interest as the Central Government, in consultation with the Reserve Bank, or the Reserve Bank, may give in writing.
SECTION 06: BOARD OF DIRECTORS
(1) The Board of Directors of the National Housing Bank shall consist of the following, namely:-
(a) a Chairman and a Managing Director: Provided that the same person may be appointed as Chairman and as Managing Director;
(b) three directors from amongst the experts in the field of housing, architecture, Engineering, sociology, finance, law management and corporate planning or in any other Field, special knowledge of which is considered useful to the National Housing Bank:
(c) three directors, who shall be persons with experience in the working of institutions involved in providing funds for housing or engaged in housing development:
(d) two directors from out of the directors of the Reserve Bank:
(e) three directors from amongst the official of the Central Government;
(f) two directors from amongst the officials of the State Government.
(2) the Chairman, the Managing Director and other directors excluding the directors referred to in clause (d), shall be appointed by the Central Government in consultation with the Reserve Bank and directors referred to in clause (d) shall be nominated by the Reserve Bank.
SECTION 07: TERMS OF OFFICE OF CHAIRMAN, MANAGING DIRECTOR AND OTHER DIRECTORS, SERVICE CONDITIONS, ETC
(1) The Chairman and the Managing Director shall hold office for such term, not exceeding five years and shall receive such salary and allowances and be governed by such terms and conditions of service as the Central Government may. in consultation with the Reserve Bank. specify and shall be eligible for re-appointment; Provided that the Chairman as the case may be, the Managing Director shall, notwithstanding the expiration of his term, continue to hold office until his successor enters upon his office.
(2) The director referred to in clauses (b) and (c) of sub-section (1) of section 6-shall hold office for a term of three years: Provided that any such director shall, notwithstanding the expiration of his term, continue to hold office until his successor enters upon his office.
(3) The Central Government may. in consultation with the Reserve Bank remove the Chairman or the Managing Director, or any other director referred to in sub-section (2) at any time before the expiry of his terms of office after giving him a reasonable opportunity of showing cause against the proposed removal.
(4) Notwithstanding anything contained in sub-sections ( 1 ) and (3) the Central Government, in consultation with the Reserve Bank, shall have the right to terminate the term of office of the Chairman or, as the case may be, the Managing Director, at any time before the expiry of the term specified under sub-section (1) by giving him notice of not less than three months in writing or three months salary and allowances in lieu thereof and the Chairman or the Managing Director, as the case may be, shall also have the right to relinquish his office at any time before the expiry of the term specified under sub -section (1) by giving to the Central Government notice of not less than three months in writing or three months' salary and allowances in lieu thereof.
(5) The directors shall be paid fees and allowances as may be prescribed for attending the meetings of the Board or of any of its committees and for attending to any other work of the National Housing Bank; Provided that no such fee shall be payable to any director, who is an official of the Government or a director of the Reserve Bank.
SECTION 08: DISQUALIFICATIONS
No person shall be a director of the Board, if he-
(a) is, or becomes of unsound mind and has been so declared by a competent Court; or
(b) is or has been convicted of any offence which, in the opinion of the Central Government, involves moral turpitude, or
(c) is, or at any time has been, adjudicated as insolvent or has suspended payment of his debts or has compounded with his creditors; or
(d) has, for any reason, been removed or dismissed from the service of-
(i) the Government, or
(ii) the Reserve Bank, the State Bank or any other Bank, or
(iii) any public financial institution, or state financial corporation, or
(iv) any other corporation owned or controlled by the Government.
SECTION 09: VACATION AND RESIGNATION OF OFFICE BY DIRECTORS
(1) If a director-
(a) becomes subject to any of the disqualifications mentioned in Section 8-; or
(b) is absent without leave of the Board for three or more consecutive meetings thereof his seat shall thereupon become vacant.
(2) Any director may resign his office by giving notice thereof in writing to the authority that appointed or, as the case may be, nominated him and on the resignation being accepted by such authority or if his resignation is not sooner accepted, on the expiry of three months from the receipt thereof by such appointing authority, he shall be deemed to have vacated his once.
SECTION 10: CASUAL VACANCY IN THE OFFICE OF CHAIRMAN OR MANAGING DIRECTOR
If the Chairman, or as the case may be, the Managing Director, is by infirmity or otherwise rendered incapable of carrying out his duties or is absent on leave or otherwise, in circumstances not involving the vacation of his appointment, the Central Government may, appoint another person to act in his place during his absence.
SECTION 11: MEETINGS OF BOARD
(1) The Board shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings, as may be prescribed.
(2) The Chairman, or, if for any reason he is unable to attend a meeting of the Board, the Managing Director, or in the event of both the Chairman and the Managing Director being unable to attend a meeting, any other director nominated by the Chairman in this behalf and in the absence of such nomination, any director elected by the directors present from among themselves at the meeting, shall preside at the meeting.
(3) all questions which come up before any meeting of the Board shall be decided by a majority of votes of the directors present and voting, and in the event of an equality of votes, the Chairman, or, in his absence, the person presiding, shall have a second or casting vote.
SECTION 12: EXECUTIVE COMMITTEE AND OTHER COMMITTEES
(1) The Board may constitute an Executive Committee consisting of such number of directors as may be prescribed.
(2) The Executive Committee shall discharge such functions as may be prescribed, or, as may be delegated to it, by the Board.
(3) The Board may constitute such other committees, whether consisting wholly of directors or wholly of other persons or partly of directors and partly of other persons as it thinks fit for such purposes, as it may decide and any committee so constituted shall discharge such functions as may be delegated to it by the Board.
(4) The Executive Committee or any other committees constituted under this section shall meet at such times and places and shall observe such rules of procedure in regard to transaction of business at its meetings, as may be prescribed.
SECTION 13: DIRECTOR OF BOARD OR MEMBER OF COMMITTEE THEREOF NOT TO PARTICIPATE IN MEETINGS IN CERTAIN CASES
Any director of the Board or any member of a committee, who has any direct or indirect pecuniary interest in any matter coming up for consideration at a meeting of the Board or a committee thereof, shall as soon as possible after relevant circumstances have come to his knowledge disclose the nature of his interest at such meeting and the disclosure shall be recorded in the minutes of the Board, or the committee, as the case may be, and the director or member shall not take any part in any deliberation or decision of the Board or the committee with respect to that matter.
SECTION 14: BUSINESS OF THE NATIONAL HOUSING BANK
Subject to the provisions of this Act, the National Housing Bank may transact all or any of the following kinds of business, namely:-
(a) promoting, establishing, supporting or aiding in the promotion, establishment and support of housing finance institutions;
(b) making of loans and advances or rendering any other form -of financial assistance whatsoever to housing finance institutions and scheduled banks,2[or to any authority established by or under any Central, State or Provincial Act and engaged in slum clearance];
(c) subscribing to or purchasing stocks, shares, bonds, debentures and securities of every other description;
(d) guaranteeing the financial obligations of housing finance institutions and underwriting the issue of stocks, shares, bonds debentures and securities of every other description of housing finance institutions;
(e) drawing, accepting, discounting or rediscounting, buying or selling and dealing in bills of exchange, promissory notes, bonds, debentures, hundies, coupons and other instruments by whatever name called;
(f) forming, promoting and managing subsidiaries for carrying out all or any of its functions under this Act;
(g) undertaking research and surveys on construction techniques and other studies relating to or connected with shelter, housing and human settlement;
(h) formulating one or more schemes, for the purpose of mobilisation ofresources and extension of credit for housing;
2(hh) formulating a scheme for the purpose of accepting deposits referred to in clause (a) of Section 2 of the Voluntary Deposits (Immunities and Exemptions) Act, 1991and crediting forty per cent. of the amount of such deposits to a special fund created under section 37-;]
(i) formulating one or more schemes; for the economically weaker sections of society which may be subsidised by the Central Government or any State Government or any other source;
(j) organising training programmes, seminars and symposia on matters relating to housing;
(k) providing guidelines to the housing finance institutions to ensure their growth on sound lines;
(1) providing technical and administrative assistance to housing finance institutions;
(m) coordinating with the Life Insurance Corporation of India, the Unit Trust of India, the General Insurance Coloration of India and other financial institutions, in the discharge of its overall functions;
(n) exercising all powers and functions in the performance of duties entrusted to the National Housing Bank under this Act or under any other law for the time being in force;
(o) acting as agent of the Central Government, the State Government or the Reserve Bank or of any authority as may be authorised by the Reserve Bank;
(p) any other kind of business which the Central Government may on the recommendation of the Reserve Bank, authorise;
(q) generally, doing of all such matters and things as may be incidental to or consequential upon the exercise of its powers of the discharge of its duties under this Act.
SECTION 15: BORROWINGS AND ACCEPTANCE OF DEPOSITS BY NATIONAL HOUSING BANK
(1) The National Housing Bank may, for the purpose of carrying out its functions under this Act-
(a) issue and sell bonds and debentures with or without the guarantee of the Central Government, in such manner and on such terms as may be prescribed;
(b) borrow money from the Central Government and from any other authority
or organisation or institution approved by that Government on such terms and conditions as may be agreed upon;
(c) accept deposits repayable after the expiry of a period which shall not be less than twelve months from the date of the making of the deposit on such terms as may generally or specially be approved by the Reserve Bank;3 [Provided that nothing contained in this clause shall apply to deposits accepted under the scheme formulated by the Bank in pursurance of clause (hh) of Section 14-;]
(d) borrow money from the Reserve Bank-
(i) repayable on demand or on the expiry of fixed periods not exceeding eighteen months from the date of the making of loan or advance, on such terms and conditions including the terms relating to security and purpose as may be specified by the Reserve Bank;
(ii) out of the National Housing Credit (Long Term Operations) Fund established
under section 46D of the Reserve Bank of India Act, 1934or any of the purposes specified in that section;
(e) receive for services rendered, such remuneration, commission, commitment charges. consultancy charges, service charges, royalities premia, licence fees and any other consideration of whatever description;
(f) receive gifts, grants, donations or benefactions from Government or any other source.
(2) The Central Government may on a request being made to it by the National Housing Bank, guarantee the bonds and debentures issued by the National Housing Bank as to the repayment of principal and the payment of interest at such rate as may be fixed by that Government.
SECTION 16: LOANS IN FOREIGN CURRENCY
(1) Notwithstanding anything contained in the Foreign Exchange Regulation Act, 1973or in any other law for the time being in force relating to foreign exchange, the National Housing Bank may, for the purpose of making loans and advances under this Act, borrow in such manner and on such conditions as may be prescribed in consultation with the Reserve Bank and with the previous approval of the Central Government, foreign currency from any bank or financial institution in India or elsewhere.
(2) The Central Government may, where necessary, guarantee any loan taken by the National Housing Bank under sub-section (1) or any part thereof as to the repayment of principal and the payment of interest and other incidental charges.
SECTION 17: POWER TO TRANSFER RIGHTS
The rights, and interests of the National Housing Bank (including any other rights incidental thereto) in relation to any loan or advance made, or any amount recoverable, by it, may be transferred by the National Housing Bank, either in whole or in part, by the execution or issue of any instrument or by the transfer of any instrument by endorsement, or in any other manner in which the rights and interests in relation to such loan or advance may be lawfully transferred, and the National Housing Bank may, notwithstanding such transfer, act as the trustee within the meaning of section 3 of the Indian Trusts Act. 1882, for the transferee.
SECTION 18: POWER TO ACQUIRE RIGHTS
The National Housing Bank shall have the right to acquire, by transfer or assignment, the rights and interests or any housing finance institution (including any other rights incidental thereto) in relation to any loan or advance made. or any amount recoverable by such institution, either in whole or in part, by the execution or issue of any instrument or by the transfer of any instrument or in any other manner in which the rights and interests in relation to such loan or advance may be lawfully transferred.
SECTION 19: POWER TO IMPOSE CONDITIONS FOR ACCOMMODATION
In entering into any transaction under this Chapter with any borrowing housing finance institution, the National Housing Bank may impose such conditions as it may think necessary or expedient for protecting the interests of the National Housing Bank.
SECTION 20: POWER TO CALL FOR REPAYMENT BEFORE AGREED PERIOD
Notwithstanding anything to the contrary contained in any agreement, the National Housing Bank may, by notice in writing, require any borrowing housing finance institution to discharge forthwith in full its liabilities to the National Housing Bank-
(a) if it appears to the Board that false or misleading information in any material particular was given in the application for the loan or advance; or
(b) if the borrowing housing finance institution has failed to comply with any of the terms of agreement with the National Housing Bank in the matter of the loan or advance; or
(c) if there is a resonable apprehension that the borrowing housing finance institution is unable to pay its debts or that proceedings for liquidation may be commenced in respect thereof; or
(d) if for any reason, it is necessary so to do to protect the interests of the National Housing Bank.
SECTION 21: NATIONAL HOUSING BANK TO HAVE ACCESS TO RECORDS
(1) The National Housing Bank shall have free access to all such records of any housing finance institution which seeks to avail of any credit facilities from the National Housing Bank and to all such records of any person who seeks to avail of any credit facilities from such housing finance institution, the perusal of which may appear to the National Housing Bank to be necessary in connection with the providing of finance or other assistance to such housing finance institution or the refinancing of any loan or advance made to such person by that housing finance institution.
(2) The National Housing Bank may require any institution or person referred to in sub- section (1) to furnish to it copies of any of the records referred to in that sub-section and the institution or the person, as the case may be, shall be bound to comply with such requisition.
SECTION 22: VALIDITY OF LOAN OR ADVANCE NOT TO BE QUESTIONED
Notwithstanding anything to the contrary contained in any other law for the time being in force, the validity of any loan or advance made by the National Housing Bank in pursuance of the provisions of this Act shall not be called in question merely on the ground of non-compliance with the requirements of such other law or of any. resolution, contract, or any instrument regulating the constitution of the borrowing housing finance institution: Provided that nothing in this section shall enable any company or co-operative society to obtain any loan or advance where the instrument relating to the constitution of such company or co- operative society does not empower such company or co-operative society so to do.
SECTION 23: NATIONAL HOUSING BANK NOT TO MAKE LOANS OR ADVANCES AGAINST ITS OWN BONDS OR DEBENTURES
The National Housing Bank shall not make any loan or advance on the security of its own bonds or debentures.
SECTION 24: POWER TO INSPECT
(1) The National Housing Bank may at any time and shall, on being directed to do by the Reserve Bank, cause an inspection to be made by one or more of its officers of any housing finance institution to which the National Housing Bank has made any loan or advance or granted any other financial assistance, and its books, accounts and other documents; and the National Housing Bank shall supply to the housing finance institution a copy of its report on such inspection.
(2) It shall be the duty of every officer, employee or other person or persons incharge of the whole or part of the affairs of the housing finance institution to produce to any officer making an inspection under sub-section (1) all such books, accounts and other documents in his custody or power and to furnish within such time as the said officer may specify, any statements, information relating to the affairs of the housing finance institution as the said officer may require of him.
SECTION 25: POWER TO COLLECT CREDIT INFORMATION
(2) Every housing finance institution shall, notwithstanding anything to the contrary contained in any law for the time being in force or in any instrument regulating the constitution thereof or in any agreement executed by it, relating to the secrecy of its dealings with its constituents, be bound to comply with any directions issued under sub-section (1).
(3) The National Housing Bank may, for the purpose of the efficient discharge of its functions under this Act collect from the Central and State Governments, local authorities, the Reserve Bank, any bank or such financial or other institutions as the Reserve Bank may specify in this behalf, credit information or other information.
SECTION 26: POWER TO PUBLISH INFORMATION
The National Housing Bank, if it considers it in the public interest so to do, may publish any credit information or other information obtained by it under this Act, in such consolidated form or in any other form as it thinks fit.
SECTION 27: ADVISORY SERVICES
The National Housing Bank may provide advisory services to the Central and State Governments, local authority and other agencies connected with housing in respect of-
(a) formulation of overall policies aimed at promoting the growth of housing and housing finance institutions;
(b) legislation relating to matters having a bearing on shelter, housing and human settlement.
SECTION 28: DEFINITION OF DEPOSIT
In this Chapter the term 'deposit' shall have the meaning assigned to it in section 45-1 of the Reserve Bank of India Act, 1934
SECTION 29: CHAPTER NOT TO APPLY IN CERTAIN CASES
(1) The provisions of this Chapter shall not apply to deposits accepted by a housing finance institution which is a firm or an unincorporated association of individuals.
(2) For the removal of doubts, it is hereby declared that the firms and unincorporated associations of individuals referred, to in sub-section (1) shall continue to be governed by the provisions ofChapter 3C of the Reserve Bank of India Act, 1934.
SECTION 30: NATIONAL HOUSING BANK TO REGULATE OR PROHIBIT ISSUE OF PROSPECTUS OR ADVERTISEMENT SOLICITING DEPOSITS OF MONEY
The National Housing Bank may, if it considers necessary in the public interest so to do, by general or special order,-
(a) regulate or prohibit the issue by any housing finance institution of any prospectus or advertisement soliciting deposits of money from the public; and
(b) specify the conditions subject to which any such prospectus or advertisement, if not prohibited, may be issued.
SECTION 31: POWER OF NATIONAL HOUSING BANK TO COLLECT INFORMATION FROM HOUSING FINANCE INSTITUTIONS AS TO DEPOSITS AND TO GIVE DIRECTIONS
(1) The National Housing Bank may at any time direct" that every housing finance institution accepting deposits shall furnish to the National Housing Bank in such form, at such intervals and within such time, such statements, information or particulars relating to or connected with deposits received by the housing finance institution, as may be specified by the National Housing Bank by general or special order.
(2) Without prejudice to the generality of the power vested in the National Housing Bank under sub-section ( 1 ) the statement, information or particulars to be furnished under sub-section ( 1 ) may relate to all or any of the following matters, namely, the amount of the deposits, the purposes and periods for which, and the rates of interest and other terms and conditions on which, such deposits are received.
(3) The National Housing Bank may, if it considers necessary in the public interest so to do, give directions to housing finance institutions accepting deposits either generally or to any group of housing finance institutions accepting deposits, and in particular, in respect of any matters relating to, or connected with, the receipt of deposits, including the rates of interest payable on such deposits, and the periods for which deposits may be received.
(4) If any housing finance institution, accepting deposits fails to comply with any direction. given by the National Housing Bank, under subsection (3) the National Housing Bank may prohibit the acceptance of deposits by that housing finance institution.
(5) Every housing finance institution receiving deposits, shall, if so required by the National Housing Bank and within such time as the National Housing Bank may specify, cause to be sent at the cost of the housing finance institution, a copy of its annual balance-sheet and profit and loss account or other annual accounts to every person from whom the housing finance institution holds, as on the last day of the year to which the accounts, relate, deposits higher than such sum as may be specified by the National Housing Bank.
SECTION 32: DUTY OF HOUSING FINANCE INSTITUTIONS TO FURNISH STATEMENTS, ETC., REQUIRED BY NATIONAL HOUSING BANK
Every housing finance institution shall furnish the statements, information or particulars called for, in such form as may be prescribed and to comply with any direction given to it, under the provisions of this Chapter.
SECTION 33: POWERS AND DUTIES OF AUDITORS
(1) The auditor of every housing finance institution shall enquire whether or not the housing finance institution has furnished to the National Housing 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 housing finance institution has furnished such statements, information or particulars, make a report to the National Housing Bank giving the aggregate amount of such deposits held by the housing finance institution.
(2) Where, in the case of a housing finance institution, being a company, the auditor has made, or intends to make a report to the National Housing Bank under sub-section (1), he shall include in his report under sub-section (2) of section 227 of the Companies Act, 1956the contents of the report which he has made, or intends to make, to the National Housing Bank.
SECTION 34: INSPECTION
(1) The National Housing Bank may. at any time, cause in inspection to be made by one or more of its officers or employees or other persons (hereafter in this section to be referred to as the inspecting authority) any housing finance institution accepting deposits, 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.
SECTION 35: DEPOSITS NOT TO BE SOLICITED BY UNAUTHORISED PERSONS
No person shall solicit on behalf of any 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 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.
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 37: GENERAL FUND AND OTHER FUNDS
(1) With effect from such date as the Reserve Bank may specify, the National Housing Bank shall establish a fund to be called the General Fund and all payments by the National Housing Bank shall be made out of the said General Fund.
(2) the Board may, and shall, if so directed by the Reserve Bank create a special fund or a reserve fund or such other funds as may be prescribed.
SECTION 38: PREPARATION OF BALANCE-SHEET, ETC., OF NATIONAL HOUSING BANK
(1) The balance- sheet and accounts of the National Housing Bank shall be prepared and maintained in such form and manner as may be prescribed.
(2) The Board shall cause the books and accounts of the National Housing Bank to be balanced and closed as on the thirtieth of June each year.
SECTION 39: DISPOSAL OF SURPLUS
After making provision for bad and doubtful debts, depreciation of assets and all other matters for which provision is necessary or expedient or which is usually provided for by bankers, the National Housing Bank shall transfer-
(i) for a period of fifteen years, following the accounting year during which the National Housing Bank is established, the amount remaining (hereafter in this section referred to as surplus) such of the funds referred to insection 37-as the Reserve Bank may specify;
(ii) after the expiry of the said period of fifteen years, the National Housing Bank shall, after making provision for the funds referred to section 37-transfer the balance of surplus to the Reserve Bank.
SECTION 40: AUDIT
(1) The accounts of the National Housing Bank shall be audited by auditors duly qualified to act as auditors under sub-sec. (1) of S. 226 of the Companies Act, 1956, who shall be appointed by the Reserve Bank, for such term and on such remuneration as the Reserve bank may fix.
(2) The auditors shall be supplied with a copy of the annual balance sheet of the National Housing Bank and it shall be their duty to examine it together with the accounts and vouchers relating thereto and they shall have a list delivered to them of all books kept by the National Housing Bank and shall at all reasonable times have access to the books, accounts, vouchers and other documents of the National Housing Bank.
(3) The auditors may, in relation to the accounts of the National Housing Bank, examine any director of the Board or any officer or other employee of the National Housing Bank and shall be entitled to require from the Board or officers or other employees of the National Housing Bank such information and explanation as they may think necessary for the performance of their duties.
(4) The auditors shall make a report to the National Housing Bank upon the annual balance sheet and accounts examined by them and in every such report, they shall state whether in their opinion the balance sheet is a full and fair balance sheet containing all necessary particulars and properly drawn up so as to exhibit a true and fair view of the State of affairs of the National Housing Bank and in case they had called for any explanation or information from the Board or any officer or other employee of the National Housing Bank, whether it was given and whether it was satisfactory.
(5) The National Housing Bank shall furnish to the Central Government and the Reserve Bank within three months from the date on which the annual accounts of the National Housing Bank are closed and balanced, a copy of its balance sheet as on the close of the relevant year together with a copy of the profit and loss account for the year and a copy of the auditors report and a report of the working of the National Housing Bank during that year, and the Central Government shall, as soon as may be after they are received by it, cause the same to be laid before each House of Parliament.
(6) Without prejudice to anything contained in the preceding sub-sections, the Central Government may, at any time, appoint the Comptroller and Auditor-General of India to examine and report upon the accounts of the National Housing Bank and any expenditure incurred by him in connection with such examination and report shall be payable by the National Housing Bank to the Comptroller and Auditor-General of India.
SECTION 41: RETURNS
The National Housing Bank shall furnish, from time to time, to the Reserve Bank such information and returns as the Reserve Bank may require.
SECTION 42: ANNUAL REPORT ON HOUSING
The National Housing Bank shall make an annual report to the Central Government and the Reserve Bank on the trend and progress of housing in the country and in that report may make such suggestions as it may think necessary or expedient for the development of housing and the Central Government shall, as soon as may be after the report is received by it, cause the same to be laid before each House of Parliament.
SECTION 43: STAFF OF NATIONAL HOUSING BANK
(1) The National Housing Bank may appoint such number of officers and other employees as it considers necessary or desirable for the efficient performance of its functions and determine the terms and conditions of their appointment and service.
(2) The duties and conduct, terms and conditions of service and the establishment and maintenance of provident fund or any other fund for the benefit of the officers and other members of staff of the National Housing Bank shall be such as may be prescribed.
(3) The National Housing Bank may depute any officer or any member of its staff for such period and on such terms and conditions as it may determine, to any institution including a housing finance institution.
(4) Nothing contained in this section shall empower the National Housing Bank to depute any officer or member of its staff to any institution on any salary, emoluments or other terms and conditions which is or are less favourable to him than that or those to which he is entitled to immediately before such deputation.
(5) The National Housing Bank may, without prejudice to the provisions of section 54AA of the Reserve Bank of India Act, 1934, receive or take on deputation any officer or other employee from any institution including a housing finance institution for such period and on such terms and conditions as it may think necessary in the interest of the National Housing Bank.
SECTION 44: OBLIGATION AS TO FIDELITY AND SECRECY
(1) The National Housing Bank shall not, except as otherwise required by this Act or any other law, divulge any information relating to, or to the affairs of, its constituents except in circumstances in which it is, in accordance with the law or practice and usage customary among bankers, necessary or appropriate for the National Housing Bank to divulge such information.
(2) Every director, member of a committee, auditor, advisor, officer or other employee of the National Housing Bank or of the Reserve Bank, whose services are utilised by the National Housing Bank under the provisions of this Act, shall, before entering upon his duties, make a declaration of fidelity and secrecy in the form set out in the First Schedule to this Act.
SECTION 45: DEFECTS IN APPOINTMENT NOT TO INVALIDATE ACTS, ETC
(1) No act or proceeding of the Board or of any committee of the National Housing Bank shall be questioned on the ground merely of the existence of any vacancy in, or defect in the constitution of, the Board or the committee, as the case may be.
(2) No act done by any person acting in good faith as a director of the Board or as a member of a committee of the National Housing Bank shall become invalid merely on the ground that he was disqualified to be a director or that there was any other defect in his appointment.
SECTION 46: PROTECTION OF ACTION TAKEN UNDER THE ACT
No suit or other legal proceedings shall lie against the National Housing Bank or any director or any officer or other employee of the National Housing Bank or any other person authorised by the National Housing Bank to discharge any functions under this Act for any loss or damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of this Act or of any other law or provision having the force of law.
SECTION 47: INDEMNITY OF DIRECTORS
(1) Every director shall be indemnified by the National Housing bank against all losses and expenses incurred by him in, or in relation to, the discharge of his duties, except such as are caused by his own wilful act or default.
(2) A director shall not be responsible for any other director or for any officer or other employee of the National Housing Bank or for any loss or expenses resulting to the National Housing Bank from the insufficiency or deficiency of the value of, or title to, any property or security acquired or taken on behalf of the National Housing Bank or the insolvency or Wrongful act of any debtor or any person under obligation to the National Housing Bank or anything done ingood faith in the execution of the duties of his office in relation thereto.
SECTION 48: EXEMPTION FROM TAX ON INCOME
Notwithstanding anything contained in the Income-tax Act, 1961, or any other enactment for the time being in force relating to tax on income, profits or gains, the National Housing Bank shall not be liable to pay income-tax or any other tax in respect of its income, profits or gains derived.
SECTION 49: PENALTIES
(1) Whoever in any return, balance sheet, or other document or in any information required or furnished by or under or for the purposes of any provision of this Act, wilfully makes a statement which is false in any material particular, knowing it to be false, or wilfully omits to make a material statement, shall be punishable with imprisonment for a term which may extend to three years and shall also be liable to fine.
(2) If any person fails to produce any book, account or other document, or to furnish any statement or information which, under the provisions of this Act, it is his duty to produce or furnish, he shall be punishable with fine which may extend to two thousand rupees in respect of each offence and in the case of a continuing failure, with an additional fine which may extend to one hundred rupees for every day during which the failure continues after conviction for the first such failure.
(3) If any person-
(a) receives any deposit in contravention of any direction given or order made under Chapter V; or
(b) issues any prospectus or advertisement otherwise than in accordance with section 35-or any order made under section 30-as the case may be; he shall be punishable with imprisonment for a term which may extend to three years and shall also be liable to fine which may extend-
(i) in the case of a contravention falling under clause (a) to twice the amount of deposit received; and
(ii) in the case of a contravention falling under clause (b) to twice the amount of the deposit called for by the prospectus or advertisement.
(4) If any other provision of this Act is contravened or if any default is made in complying with any other requirement of this Act, or of any order, regulation or direction made or given or condition imposed thereunder, any person guilty of such contravention or default shall be punishable with fine which may extend to two thousand rupees and where a contravention or default is a continuing one with further fine which may extend to one hundred rupees for every day, after the first, during which the contravention or default continues.
SECTION 50: OFFENCE BY COMPANIES
(1) Where an offence has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-sec. (1) where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
SECTION 51: COGNIZANCE OF OFFENCES
(1) No Court shall take cognizance of any offence punishable under this Act except upon a complaint in writing made by an officer of the National Housing Bank, generally or specially authorised in writing in this behalf by the National Housing Bank, and no Court other than that of a Metropolitan Magistrate or a Judicial Magistrate of the first class or a Court superior thereto shall try any such offence.
(2) Notwithstanding anything contained in the Code of Criminal Procedure 1973, a Magistrate may, if he sees reason so to do, dispense with the personal attendance of the officer of the National Housing Bank filing the complaint but the Magistrate may in his discretion, at any stage of the proceedings, direct the personal attendance of the complaint.
SECTION 52: APPLICATION OF FINE
A Court imposing any fine under this Act may direct that the whole or any part thereof shall be applied in, or towards payment of, the cost of the proceedings.
SECTION 53: BANNERS' BOOKS EVIDENCE ACT 18 OF 1891, TO APPLY IN RELATION TO NATIONAL HOUSING BANK
The Bankers' Books Evidence Act, 1891shall apply in relation to the National Housing Bank as if it were a bank as defined in section 2of that Act.
SECTION 54: LIQUIDATION OF NATIONAL HOUSING BANK
No provision of law relating to the winding up of companies shall apply to the National Housing Bank and the National Housing Bank shall not be placed in liquidation save by order of the Central Government and in such manner as it may direct.
SECTION 55: POWER OF THE BOARD TO MAKE REGULATIONS
( 1 ) The Board may, with the previous approval of the Reserve Bank and in consultation with the Central Government, by notification, make
regulations5not inconsistent with this Act to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:-
(a) the fees and allowances that may be paid to the directors for attending the meetings of the Board or its committee under sub-section (5) of section 7-,
(b) the times and places at which the Board may meet, and the rules of procedure that may be followed in regard to the transaction of business under sub-section ( 1 ) of section 11-;
(c) the number of members that the Executive Committee may consist the functions that it may discharge and times and places at which it shall meet and the rules of procedure that it may follow in the transaction of business under section 12-;
(d) the manner and terms of issue and redemption of bonds and debentures under clause (a) of sub-section (1) of section 15-;
(e) the manner in which and the conditions subject to which the National Housing Bank may borrow in foreign currency under sub-section (1) of section 16-;
(f) the form in which the statements, information, etc., is to be furnished under section 32-
(g) the special fund, reserve fund and other funds to be created under subsection (2) of section 37-:
(h) the form and manner in which the balance sheet and accounts shall be prepared and maintained under sub-section (1) of section 38-;
(i) the duties and conduct, salaries, allowances and conditions of service of the officers and other members of staff of the National Housing Bank under section 43-;
(j) the establishment and maintenance of provident fund and any other fund for the benefit of officers and other members of staff of the National Housing Bank under section 43-; and
(k) any other matter which is to be, or may be, prescribed.
(3) Any regulation which may be made by the Board under this Act may be made by the Reserve Bank, in consultation with the Central Government, before the expiry of three months from the date of establishment of the National Housing Bank, and any regulation so made may be altered and rescinded by the Board in the exercise of its powers under this Act.
(4) The power to make regulations conferred by this section shall include the power to give retrospective effect to the regulations or any of them from a date not earlier than the date of commencement of this Act but no retrospective effect shall be given to any regulation so as to prejudicially affect the interests of any person to whom such regulation may be applicable.
(5) The Central Government shall cause every 6[regulation or scheme] made under this Act to be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses
agree in making any modification in the 6[regulation or scheme] or both Houses agree that the6[regulation or scheme] should not be made, the6 [regulation or scheme] shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under the regulation.
SECTION 56: AMENDMENT OF CERTAIN ENACTMENTS
The enactments specified in the Second Schedule to this Act shall be amended in the manner provided therein and unless otherwise provided in that Schedule, such amendments shall take effect on and from the date or establishment of the National Housing Bank under section 3-
SECTION 57: POWER TO REMOVE DIFFICULTIES
If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order, not inconsistent with the provisions of this Act, remove the difficulty: Provided that no such order shall be made after the expiry of a period of three years from the commencement of this Act.
SCHEDULE 1 THE SCHEDULE
[See Section 44(2)-] Declaration of Fidelity and Secrecy I, ...........................do hereby declare that I will faithfully, truly and to the best of my skill and ability execute and perform the duties required of me as director, [Vol. 35] 5 A.M./58 member of the................................. committee, auditor, advisor, officer or other employee (as the case may be) of the National Housing Bank and which properly relate to the office or position held by me in or in relation to the said National Housing Bank. I further declare that I will not communicate or allow to be communicated to any person not legally entitled thereto any information relating to the affairs of the National Housing Bank nor will I allow any such person to inspect or have access to any books or documents belonging to or in the possession of the National Housing Bank and relating to the business of the said National Housing Bank or the business of any person having any dealing with the said National Housing Bank. Signed before me (Signature)
SCHEDULE 2 Amendments to certain Enactments
PART 1AMENDMENTS TO THE RESERVE BANK OF INDIA ACT, 1934 (2 OF 1934) AMENDMENTS1. In section 2-after clause (ccc), the following clause shall be inserted, namely:- "(cccc) 'National Housing Bank' means the National Housing Bank established underS.3 of the National Housing Bank Act, 1987;" 2. In section 17-,- (i) after clause (4D), the following clause shall be inserted, namely:- "(4DD) the making to the National Housing Bank of loans and advances and generally assisting the National Housing Bank in such manner and on such terms as may be determined by the Central Board." (ii) after clause (4G), the following clause shall be inserted, namely:- "(4GG) the making of loans and advances to, and the purchasing of bonds and debentures of, the National Housing Bank out of the National Housing Credit (Long Term Operations) Fund established under section 46D;" (iii) after clause (8A), the following clause shall be inserted, namely:- "(8AA) the promoting, establishing, supporting or aiding in the promotion, establishment and support of any financial institution, whether as its subsidiary or otherwise." 3. In the Explanation to sub-section (1) of section 42in sub-clause (ii) of clause (c), after the words "or from the Reconstruction Bank", the words "or from the National Housing Bank" shall be inserted. 4. After section 46Cthe following section shall be inserted, namely:- "46D. National Housing Credit (Long Term Operations) Fund.- (1) The Bank shall establish and maintain a Fund to be known as the National Housing Credit (Long Term Operations) Fund to which shall be credited every year such sums of money as it may consider necessary (2) The amount in the said Fund shall be applied by the Bank only to the following objects, namely:- (a) the making to the National Housing Bank of loans and advances for the purpose of any business of the National Housing Bank; (b) the purchasing of bonds and debentures issued by the National Housing Bank." PART 2 AMENDMENTS TO THE BANKING REGULATION ACT, 1949 (10 OF 1949) AMENDMENTS 1. In section 5after clause (ffc), the following clause shall be inserted, namely:- '(ffd) "National Housing Bank" means the National Housing Bank established under section 3 of the National Housing Bank Act, 1987; 2. In sub-section (1) of section 18in the Explanation, in sub-clause (ii) of clause (a) after the words "or from the Reconstruction Bank", the words "or from the National Housing Bank" shall be inserted. 3. In section 34A, in sub-section (3), after the words "the Reconstruction Bank", the words "the National Housing Bank" shall be inserted. 4. In section 36AD, in sub-section (3) after the words "the Reconstruction Bank", the words "the National Housing Bank" shall be inserted. 5. In section 56under clause (j) in the Explanation, in sub-clause (ii) of clause (a), after the words "the Reconstruction Bank", the words "the National Housing Bank" shall be inserted. PART 3 AMENDMENT TO THE INDUSTRIAL DISPUTES ACT, 1947 (14 OF 1947) AMENDMENT In section 2in clause (a) in sub-clause (i), after the words "the Industrial Reconstruction Bank of India", the words and figures "the National Housing Bank established under section 3 of the National Housing Bank Act, 1987" shall be inserted. PART 4 AMENDMENT TO THE PAYMENT OF BONUS ACT, 1965 (21 OF 1965) AMENDMENT In section 32after sub-clause (f) of clause (ix), the following sub-clause shall be inserted, namely:- "(ff) the National Housing B ank;"
Footnotes:
1. 9-7-88 - Date on which the Act except Chapt. V and S. 49(3) shall come into force Gaz. of Inc)., 9-7-88, Pt. II, S. 3(ii), Ext., P. I (No. 359). Chapt. V and S. 49(3) to came into force on 1-6-89 - Gaz. of Ind, l-6-89, Pt. II, S. 3(ii), Ext., P.2 (No. 306).
2. Inserted by Voluntary Deposits (Immunities and Exemptions) Act (47 of 1991) S. 5(a)(i)(ii) (20-9-91).
3. Inserted by Voluntary Deposits (Immunities and Exemptions) Act (47 of 1991 )S.5(b) (20-9-91).
5. For National Housing Bank (Slum Improvement and Low Cost Housing Fund) Regulations, 1993 - See Gaz. of lnd" 8-11-93. Pt. II, S. 3(ii), Ext., P. 3 (No.665). National Housing Bank Employees (Conduct) Regualtion, 1994 and National Housing Bank Employees (Discipline and Appeals) Regulations, 1994- See Gaz. of lnd" 3-2-95, Pt. II, S. 3(ii), Ext., Pp. 9, 24 (No. 68).
HOUSING FINANCE INSTITUTIONS (PROCEDURE FOR RECOVERY OF DUES) RULES, 2002
G.S.R. 341 (E).—In exercise of the powers conferred by Sec. 54A of the National Housing Bank Act, 1987 (53 of 1987), the Central Government hereby makes the following rules, namely:—
RULE 1 SHORT TITLE AND COMMENCEMENT.
(1) These rules may be called theHousing Finance Institutions (Procedure for Recovery of Dues) Rules, 2002-.
(2) They shall come into force on the date of their publication in the Official Gazette.
RULE 2 DEFINITIONS.
In these rules, unless the context otherwise requires,—
(a) "Act" means theNational Housing Bank Act, 1987(53 of 1987);
(b) "agent" means a person duly authorised by a party to present application or to give reply on its behalf to the recovery officer;
(c) "applicant" means an approved institution or a person making an application to the recovery officer under Sec. 36E;
(d) "application" means an application made to the recovery officer under Sec. 36E;
(e) all other words and expressions used and not defined in these rules but defined in the Act shall have the meaning respectively assigned to them in the Act.
RULE 3 LANGUAGE.
(1) The proceeding by the recovery officer shall be conducted in Hindi or English.
(2) No reference, application, representations, documents or other matters contained in any language other than Hindi or English shall be accepted by the recovery officer, unless the same is accompanied by a true translation thereof in Hindi or English.
RULE 4 PROCEDURE FOR FILING APPLICATION.
(1) An application shall be presented in prescribed form by the applicant in person or by his agent or shall be sent by registered post, to the recovery officer within whose jurisdiction his case falls.
(2) An application sent by post under subrule (1) shall be deemed to have been presented the day on which it is received by the recovery officer.
(3) The application under subrule (1) shall be presented in two sets, in a paper book along with an empty file size envelop bearing full address of the respondent and where the number of respondents is more than one, then sufficient number of extra paper books together with empty file size envelops bearing full address of each respondent shall be furnished by the applicant.
RULE 5 SCRUTINY OF APPLICATIONS.
(1) Recovery Officer shall endorse on every application the date on which it is presented or deemed to have been presented underRule 4-and shall sign endorsement.
(2) If, on scrutiny, the application is found to be in order, it shall be duly registered and given a serial number.
(3) If the application, on scrutiny, is found to be defective and the defect noticed is formal in nature, the recovery officer may allow the applicant filing it to rectify the defect in his presence and if the said defect is not formal in nature, the recovery officer may allow the applicant such time to rectify the defect as he may deem fit.
(4) If the concerned applicant fails to rectify the defect within the time allowed in subrule (3), the recovery officer may by order and for reasons to be recorded in writing, decline to register the application.
RULE 6 PLACE OF FILING APPLICATIONS.
The application shall be filed by the applicant with the recovery officer within whose jurisdiction borrower actually and voluntarily resides, or carries on business, or personally works for gain, or the cause of action wholly or in part arises.
RULE 7 CONTENTS OF APPLICATION.
(1) Every application filed underRule 4-shall set forth concisely under distinct heads, the grounds for such application and such grounds shall be numbered consecutively and shall be typed in double space on one side of the paper.
(2) It shall not be necessary to present separate application to seek interim or adinterim order or direction if in the original application the same is prayed for.
(3) Documents accompanying the application shall be neatly typed in double space on one side of the paper or legible photocopies thereof, duly attested by an officer of the approved institution, and numbered accordingly. The Recovery Officer may summon the original of the documents as and when it is considered necessary.
RULE 8 NOTICE TO THE BORROWER.
(1) The notice which is required to be served on the borrower under subsec. (1) of Sec. 36F shall be in the prescribed form.
(2) Every such notice shall be accompanied by a copy of the application and paper book filed by the applicant underRule 4-.
(3) The notice shall be served by delivering a copy to each of the respondent or to his authorised agent, or when such service cannot be so effected, by affixing a copy of the notice on some conspicuous part of his residence, or by registered post or by such other mode as may be decided by the recovery officer.
RULE 9 FILING OF REPLY AND OTHER DOCUMENTS BY THE RESPONDENT.
(1) On receipt of the notice, the respondent may pay the amount specified in the notice or file two complete sets containing the reply to the application as to why the relief prayed for should not be granted along with documents in a paper book form with the recovery officer within a period of ninety days from the date of service of the notice on him.
(2) The respondent shall also serve one copy of the reply along with documents as mentioned in subrule (1) to the applicant.
(3) The recovery officer may at any time for sufficient reason order that any particular fact or facts may be proved by affidavit, or that the affidavit of any witness may be read at the hearing, on such conditions as the recovery officer thinks reasonable :
Provided that where it appears to the recovery officer that either applicant or defendant desires the production of a witness for crossexamination, and that such witness can be produced an order shall not be made authorising the evidence of such witness to be given by affidavit.
(4) If the respondent denies his liability to pay the claim made by the applicant, the recovery officer may act upon the affidavit of the applicant who is acquainted with the facts of the case or who has on verification of the record sworn the affidavit in respect of the contents of application and the documents as evidence.
(5) If the respondent fails to file the reply under subrule (1) on the date fixed for hearing of the application, the recovery officer may proceed forthwith to pass such order on the application as he thinks fit.
RULE 10 DATE AND PLACE OF HEARING TO BE NOTIFIED.
(1) The recovery officer shall notify the parties the date and place of hearing of the application in such a manner as he may by general or special order direct.
(2) The recovery officer shall endeavor to hear the application at the place from where the loan was disbursed to the borrower.
RULE 11 ORDER TO BE SIGNED AND DATED.
Every order of the recovery officer shall be in writing and shall contain the date when the order was signed and pronounced.
RULE 12 Communication of orders to parties.
Every order passed on an application shall be communicated to the applicant and to the respondent either in person or by registered post free of cost.
RULE 13 ORDERS AND DIRECTIONS IN CERTAIN CASES.
The recovery officer may make such orders or give such directions as may be necessary or expedient to give effect to his orders or to prevent abuse of its process or to secure the ends of justice.
RULE 14 REVIEW.
(1) Any party considering itself aggrieved by an order made by the recovery officer on account of some mistake or error apparent on the face of the record desires to obtain a review of the order made against him, may apply for a review of the order to the recovery officer which had made the order.
(2) No application for review shall be made after the expiry of a period of thirty days from the date of communication of the order and no such application shall be entertained unless it is accompanied by an affidavit verifying the application.
(3) Where it appears to the recovery officer that there is no sufficient ground for a review, he shall reject the application but where the recovery officer is of opinion that the application for review shall be granted, he shall grant the same ;
Provided that no such application shall be granted without previous notice to the opposite party to enable him to appear and to be beared in support of the order, a review of which is applied for.
RULE 15 FEE FOR INSPECTION OF RECORDS AND OBTAINING COPIES THEREOF.
(1) No fee shall be charged for inspecting the records of pending application by a party.
(2) All costs to be incurred in obtaining copies of the document desired by a party shall be recovered from such party by the recovery officer
RULE 16 WORKING HOURS OF THE OFFICE OF RECOVERY OFFICER.
(1) Except on Saturdays, Sundays and other public holidays, the office of the recovery officer shall, subject to any order made by him, remain open daily from 10 a.m. to 6.00 p.m. but no work, unless, of an urgent nature, shall be admitted after 4.30 p.m. on any working day.
(2) The working hours of the office of the recovery officer shall be displayed at prominent place in his office.
RULE 17 SITTING HOURS OF THE RECOVERY OFFICER.
(1) The recovery officer shall regulate his own sitting hours.
(2) The sitting hours of the recovery officer shall be displayed at prominent place in his office.
RULE 18 EFFECT OF HOLIDAY.
Where the last day for doing any act falls on a day on which the office of the recovery officer is closed and by reason thereof the act cannot be done on that day, it may be done on the next day on which that office opens.
RULE 19 STAFF OF THE RECOVERY OFFICER.
(1) The approved institution, the officer of which is appointed as the recovery officer, shall provide the recovery officer with such of its other officers and employees as that institution may think fit.
(2) Such other officers and employees shall discharge their functions under the general superintendence of/the recovery officer.
RULE 20 SEAL AND EMBLEM.
The official seal and emblem of the recovery officer shall be such as the Central Government may specify.
G.S.R. 338(E).—In exercise of the powers conferred by Sec. 54-A of the National Housing Bank Act, 1987 (53 of 1987), the Central Government hereby maks the following rules, namely:—
RULE 1 SHORT TITLE AND COMMENCEMENT.
(1) These rules may be called the Housing Finance Institutions Debt Recovery Appellate Tribunal (Procedure) Rules, 2002.
(2) They shall come into force on the date of their publication in the Official Gazette.
RULE 2 DEFINITIONS.
In these rules, unless there is anything repugnant to the subject or context—
(a) "Act" means theNational Housing Bank Act, 1987(53 of 1987);
(b) "agent" means a person duly authorised by a party to present application or to give reply on its behalf to the Appellate Tribunal;
(c) "appeal" means an appeal made to the Appellate Tribunal underSec.36Sof the Act;
(d) "appellant" means a person or an approved institution making an appeal to the Appellate Tribunal under Sec. 36-S of he Act;
(e) "Appellate Tribunal" means an Appellate Tribunal established by Central Govern- ment underSec.36Iof the Act;
(f) "legal practitioner" shall have the same meaning as assigned to it in theAdvocates Act, 1961(25 of 1961);
(g) "Presiding Officer" means the Presiding Officer of an Appellate Tribunal;
(h) "recovery officer" means an officer appointed by the Central Government under Sec. 36-D of the Act;
(i) "Registrar" means the registrar of an Appellate Tribunal and includes an officer of such Appellate Tribunal who is authorised by the Presiding Officer to function as Registrar;
(j) "Registry" means the Registry of the Appellate Tribunal;
(k) all other words and expressions used and not defined in these rules but defined in the Act shall have the meanings respectively assigned to them in the Act.
RULE 3 SITTINGS OF APPELLATE TRIBUNAL.
An Appellate Tribunal shall hold its sittings either at headquarters or at such other place falling within its jurisdiction as it may consider convenient.
RULE 4 LANGUAGE OF APPELLATE TRIBUNAL.
(1) The proceedings of the Appellate Tribunal shall be conducted in English or Hindi.
(2) No appeal, reference, application, representation, document or other matters contained in any language other than English or Hindi, shall be accepted by the Appellate Tribunal, unless the same is accompanied by a true copy of translation thereof in English or Hindi.
RULE 5 PROCEDURE FOR FILING APPEALS.
(1) A memorandum of appeal shall be presented in the prescribed form by the appellant either in person to the Registrar of the Appellate Tribunal within whose jurisdiction his case falls or shall be sent by registered post addressed to such Registrar.
(2) Where the appellant is an approved institution, a memorandum of appeal may be preferred,—
(a) by one or more legal practitioners authorised by such approved institution; or
(b) by any of the officers of such approved institution to act as Presenting Officers, and every person so authorised may present the appeal before the Appellate Tribunal.
(3) Where the appellant is other than an approved institution, he may prefer an appeal in person or by his agent or by a duly authorised legal practioner.
(4) An appeal sent by post under sub-rule (1) shall be deemed to have been presented to the Registrar on the day on which it is received in the office of the Registrar.
(5) The appeal under sub-rule (1) shall be presented in four sets in a paper book along with an empty file size envelope bearing full address of the respondent and where the number of respondents are more than one, then sufficient number of extra paper book together with empty file size envelopes bearing full addresses of each respondents shall be furnished by the appellant.
RULE 6 PRESENTATION AND SCRUTINY OF MEMORANDUM OF APPEAL.
(1) The Registrar shall endorse on every appeal the date on which it is presented under Rule 5 or deemed to have been presented under that rule and shall sign endorsement.
(2) If, on scrutiny, the appeal is found to be in order, it shall be duly registered and given a serial number.
(3) If an appeal on scrutiny is found to be defective and the defect noticed is formal in nature the Registrar may allow the appellant to rectify the same in his presence and if the said defect is not formal in nature, the Registrar, may allow the appellant such time to rectify the defect as he may deem fit.
(4) If the concerned appellant fails to rectify the defect within the time allowed in sub-rule (3), the Registrar may by order and for reasons to be recorded in writing, decline to register such memorandum of appeal.
(5) An appeal against the order of the Registrar under sub-rule (4) shall be made within fifteen days of making order to the Presiding Officer concerned in his chamber, whose decision, shall be final.
RULE 7 PLACE OF FILING MEMORANDUM OF APPEAL.
The memorandum of appeal shall be filed by the appellant with the Registrar of the Appellate Tribunal having jurisdiction in the matter.
RULE 8 PAYMENT OF FEE.
Every memorandum of appeal under Sec. 36-S of the Act shall be accompanied with a prescribed fee and such fee may be remitted either in the form of crossed demand draft drawn on a nationalised bank in favour of the Registrar, Housing Finance Institu- tions Debt Recovery Appellate Tribunal .......... . (Place) and payable at the station where the Registrar's office is situated or remitted through a crossed Indian Postal Order drawn in favour of the Registrar, Hosing Finance Institutions Debt Recovery Appellate Tribunal........ (Place) and payable in Central Post Office of the station where the Appellate Tribunal is located.
RULE 9 DEPOSIT OF AMOUNT OF DEBT DUE.
Where an appeal is preferred by a borrower such appeal shall not be entertained by the Appellate Tribunal unless such person has deposited with the Appellate Tribunal seventy five per cent of the amount of debt so due from him as determined by the recovery officer underSec.36Fof the Act;
Provided that the Appellate Tribunal may, for reasons to be recorded in writing, waive or reduce the amount to be deposited underSec.36Tof the Act.
RULE 10 CONTENTS OF MEMORANDUM OF APPEAL.
(1) Every memorandum of appeal filed under Rule 5 shall set forth concisely under distinct heads, the grounds of such appeal without any argument or narrative and such grounds shall be numbered consecutively and shall be typed in double line space on one side of the paper.
(2) It shall not be necessary to present separate memorandum of appeal to seek interim order or direction if in memorandum of appeal, the same is prayed for.
RULE 11 DOCUMENTS TO ACCOMPANY MEMORANDUM OF APPEAL.
(1) Every memorandum of appeal shall be in quadruplicate and shall be accompanied with two copies (at least one of which shall be certified copy) of the order of the recovery officer against which the appeal is filed.
(2) Where the parties to the appeal are being represented by an agent, documents authorising him to act such agent shall also be appended to the appeal:
Provided that where an appeal is filed by a legal practitioner, it shall be accompanied by a duly executed Vakalatnama.
(3) Where an approved institution is being represented by any of its officer to act as Presenting Officer before the Appellate Tribunal the document authorising him to act as Present- ing Officer shall be appended to the memorandum of appeal.
RULE 12 PLURAL REMEDIES.
A memorandum of appeal shall not seek relief or reliefs based on more than a single cause of action in one single memorandum of appeal unless the reliefs prayed for are consequential to one another or arising from the same order of the recovery officer.
RULE 13 ENDORSING COPY OF APPEAL TO THE RESPONDENTS.
A copy of the memorandum of appeal and paper book shall be served on each of the respondents, as soon as they are filed, by the Registrar by registered post.
RULE 14 FILING OF REPLY TO THE APPEAL AND OTHER DOCUMENTS BY THE RESPONDENT.
(1) The respondent may file four complete sets containing the reply to the appeal alongwith documents in a paper book form with the Registry within one month of the service of the notice on him of the filing of the memorandum of appeal.
(2) The respondent shall also endorse one copy of the reply to the appeal along with documents as mentioned in sub-rule (1), to the applicant.
(3) The Appellate Tribunal may, in its discretion on application by the respondent, allow the filing of reply referred to in sub-rule (1), after the expiry of the period referred to therein.
RULE 15 WHO MAY BE JOINED AS RESPONDENT.
(1) In an appeal by a person other than- an approved institution, the approved institution who has to recover any debt from the person underSec.36Eof the Act, before the recovery officer against whose order the appeal has been preferred, shall be made the respondent to the appeal.
(2) In an appeal by an approved institution the other party shall be made the respondent to the appeal.
RULE 16 DATE AND PLACE OF HEARING TO BE NOTIFIED.
The Appellate Tribunal shall notify the parties the date and place of hearing of the appeal in such a manner as the Presiding Officer may by general or special order direct.
RULE 17 DRESS RULES FOR THE PRESIDING OFFICER AND FOR THE REPRESENTATIVES OF THE PARTIES.
(1) Summer dress for the Presiding Officer shall be white pant with black coat and a black lie or a buttoned-up black coat. In winter, striped or black trousers may be worn in place of white trousers. In the case of female Presiding Officers, however, the dress shall be black coat over white saree.
(2) The dress for the agent of the parties (other than a relative or regular employee of the appellant or respondent) appearing before the Appellate Tribunal shall be the following, namely:—
(a) in the case of a male, a suit with a tie or buttoned-up coat over a pant or
national dress that is a long buttoned-up coat on dhoti or churidar pyjama. The colour of the coat shall, preferably, be black.
(b) In the case of female, black coat over white or any other sober coloured saree.
(c) Where, however, the agent belong to a profession like that of lawyers or a chartered accountants and they have been prescribed a dress for appearing in their professional capacity before any Court, Appellate Tribunal, Tribunal or
other such authority, they may, at their option, appear in that dress, in lieu of the dress mentioned above.
(3) All other persons appearing before the Appellate Tribunal shall be properly dressed.
RULE 18 ORDER TO BE SIGNED AND DATED.
(1) Every order of the Appellate Tribunal shall be in writing and shall be signed and dated by the Presiding Officer of the Appellate Tribunal.
(2) The order shall be pronounced in open court.
RULE 19 PUBLICATION OF ORDERS.
The orders of the Appellate Tribunal as are deemed fit for publication in any authoritative report or the press may be released for such publication on such terms and conditions as the Appellate Tribunal may lay down.
RULE 20 COMMUNICATION OF ORDERS.
Every order passed on an appeal shall be communicated to the appellant and to the respondent and to the recovery officer concerned either in person or by registered post free of cost.
RULE 21 FEE FOR INSPECTION OF RECORDS AND OBTAINING COPIES THEREOF.
(1) A fee of rupees twenty for every hour or part thereof of inspection subject to a minimum of rupees one hundred shall be charged for inspecting the records of a pending appeal by a party thereto.
(2) A fee of rupees five for a folio or part thereof not involving typing and a fee of rupees ten for a folio or part thereof involving typing of statement and figures shall be charged.
RULE 22 ORDERS AND DIRECTIONS IN CERTAIN CASES.
The Appellate Tribunal may make such orders or give such directions as may be necessary or expedient to give effect to its orders or to prevent abuse of its process or to secure the ends of justice.
RULE 23 WORKING HOURS OF THE APPELLATE TRIBUNAL.
(1) Except on Saturdays, Sundays and other public holidays, the officers of the Appellate Tribunal shall, subject to any other order made by the Presiding Officer, remain open daily from 10 a.m. to 6.00 p.m. but no work, unless of an urgent nature, shall be admitted after 4.30 p.m. on any working day.
(2) The sitting hours of the Appellate Tribunal shall ordinarily be from 10.30 a.m. and 1.00 p.m. and 2.00 p.m. to 5.00 p.m. subject to any order made by the Presiding Officer.
RULE 24 EFFECT OF HOLIDAY.
Where the last day for doing any act falls on a day on which the office of the Appellate Tribunal is closed and by reason thereof the act cannot be done on that day, it may be done on the next day on which that office opens.
RULE 25 POWERS AND FUNCTIONS OF THE REGISTRAR.
(1) The Registrar shall have the custody of the records of the Appellate Tribunal and shall exercise such other functions as are assigned to him under these rules or by the Presiding Officer by a separate order in writing.
(2) The official seal shall be kept in the custody of the Registrar.
(3) Subject to any general or special direction by the Presiding Officer, the seal of the Appellate Tribunal shall not be affixed to any order, summons or other process, save under the authority in writing from the Registrar.
(4) The seal of the Appellate Tribunal shall not be affixed to any certified copy issued by the Tribunal save under the authority in writing of the Registrar.
RULE 26 ADDITIONAL POWERS AND DUTIES OF REGISTRAR.
In addition to the powers conferred elsewhere in these rules, the Registrar shall have the following powers and duties subject to any general or special orders of the Presiding Officer, namely:—
(1) to receive all appeals and other documents;
(2) to decide all question arising out of the scrutiny of the appeals before they are registered;
(3) to require any appeal presented to the Appellate Tribunal to be amended in accordance with the rules;
(4) subject to the directions of the Presiding Officer to fix date of hearing of the appeals or other proceedings and issue notices thereof;
(5) direct any formal amendment of records;
(6) to order grant of copies of documents to parties to proceedings;
(7) to grant leave to inspect the record of Appellate Tribunal;
(8) dispose of all matters relating to the service of notices of other processes, application for the issue of fresh notice or for extending the time for or ordering a particular method of service on a respondent including a substituted service by publication of the notices by way of advertisements in the newspapers;
(9) to requisition records from the custody of any court or other authority.
RULE 27 SEAL AND EMBLEM.
The official seal and emblem of the Appellate Tribunal shall be such as the Central Government may specify.
No. G.S.R. 543(1), dated 7th May, 2002. - In exercise of the powers conferred by section 14-A of the National Housing Bank Act, 1987 (53 of 1987), the Central Government hereby makes the following rules, namely:-
RULE 1 SHORT TITLE AND COMMENCEMENT
(1) These rules may be called theHousing Finance Institution Debt Recovery Appellate Tribunal (Financial and Administrative Power) Rules, 2002-.
(2) They shall come into force on the date of their publication in the Official . Gazette.
RULE 2 DEFINITIONS
- In these rules, unless the context otherwise requires,-
(a) "Act" means theNational Housing Bank Act, 1987-(53 of 1987);
(b) "Appellate Tribunal" means the Appellate Tribunal established under section36-I-of the Act;
(c) "Presiding Officer" means a person appointed as Presiding Officer of an Appellate Tribunal under section 36J-of the Act;
(d) all other words and expressions used and not defined in these rules but defined in the Act shall have the same meanings respectively assigned to them in the Act.
RULE 3 POWERS OF THE PRESIDING OFFICER OF THE APPELLATE TRIBUNAL
The Presiding Officer shall have the same powers as are conferred on a Head of Department in respect of the General Financial Rules, 1963, the Delegation of the Financial Powers Rules, 1978, the Fundamental Rules, the Supplementary Rules, the Central Civil Services (Leave) Rules, 1972, the Central Civil Services (Joining Time) Rules, 1979, the Civil Services (Pension) Rules, 1972, the Central Civil Services (Conduct) Rules, 1964, the Central Civil Services (Classification, Control and Appeal) Rules, 1965 and the General Provident Fund (Central Services) Rules, 1960 as amended from time to time:
Provided that the exercise of powers by the Presiding Officer under these rules shall be subject to such instruction as may be issued from time to time by the Central Government.
HOUSING FINANCE INSTITUTION RECOVERY OFFICERS' (QUALIFICATIONS AND CONDITIONS OF SERVICE) RULES, 2002
No. G.S.R. 336(E), dated 7th May, 2002. - In exercise of the powers conferred by section 54A of the National Housing Bank Act, 1987 (53 of 1987), the Central Government hereby makes the following rules; namely:-
RULE 1 Short title and commencement
(1) These Rules may be called theHousing Finance Institution Recovery Officers' (Qualifications and Conditions of Service) Rules, 2002-.
(2) They shall corne into force on the date of their publication in the Official Gazette.
RULE 2. QUALIFICATIONS FOR APPOINTMENT AS RECOVERY OFFICER
- A person shall not be qualified for appointment as recovery officer, unless he,-
(a) is enrolled or is qualified to be enrolled as an advance under theAdvocates Act, 1961(25 of 1961);
(b) is in the regular service of an approved institution as an officer; and
(c) has experience as an officer of one or more approved institutions for at least five years or has practiced as an advocate for at least three years.
RULE 3 TERM OF OFFICE OF RECOVERY OFFICER
The recovery officer shall hold office for such term, not exceeding three years as the Central Government may specify and shall be eligible for re-appointment:
Provided that the recovery officer shall, notwithstanding the expiration of his term, continue to hold office until his successor enters upon his office.
RULE 4 RESIGNATION BY A RECOVERY OFFICER
A recovery officer may, by writing under ' his hand addressed to the Central Government, resign at any time:
Provided that the recovery officer shall, unless he is permitted by the Central Government to relinquish office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as a successor enter upon his office, whichever is earliest.
RULE 5 REMOVAL OF RECOVERY OFFICER FROM OFFICE HI CERTAIN CIRCUMSTANCES
- The Central Government in consultation with National Housing Bank may remove from office any recovery officer, who-
(a) has been adjudged an insolvent; or
(b) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or
(c) has become physically or mentally incapable of acting as such recovery officer; or
(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a Recovery Officer; or
(e) has so abused his position as to render his continuance in office prejudicial to the public interest; or
(f) has resigned or, for any reason, removed or dismissed from the service of the approved institution of which he is an employee:
Provided that where a recovery officer is proposed to be removed on any of the grounds specified in clause (b) to (c), the recovery officer shall be informed of the charges against him and given reasonable opportunity of being heard in respect of those charges.
RULE 6 OATH OF OFFICE AND RECOVERY
Every person appointed as recovery officer shall, before entering upon his office, make and subscribe an oath of office and secrecy in Form I and Form II annexed hereto.
RULE 7 OTHER CONDITIONS OF SERVICE
The salary and allowances and other terms and conditions of service of a recovery officer in respect of matters for which no provision is made in these rules shall be the same as may for the time being be applicable to other employees of the approved institution of a corresponding status and shall continue to be paid by the approved institution of which he is an employee.
RULE 8 INTERPRETATION
If any question arises relating to the interpretation of these rules, the same shall be referred to the Central Government for its decision.
FINANCE INSTITUTION DEBT RECOVERY APPELLATE TRIBUNAL (SALARIES, ALLOWANCES AND OTHER CONDITIONS OF SERVICE OF THE OFFICER AND EMPLOYEES) RULES, 2002
No. G.S.R. 337(E), dated 7th May, 2002. - In exercise of the powers conferred by section V54A of the National Housing Bank Act, 1987 (53 of 1987), the Central Government hereby makes the following rules, namely:-
RULE 1 SHORT TITLE AND COMMENCEMENT
(1) These Rules may be called theFinance Institution Debt Recovery Appellate Tribunal (Salaries, Allowances and other Conditions of Service of the Officer and Employees) Rules, 2002.
(2) They shall come into force on the date of their publication in the Official Gazette.
RULE 2 DEFINITIONS
In these rules, unless the context otherwise requires,-
(a) "Act" means theNational Housing Bank Act, 1987(53 of 1987);
(b) all other words and expressions used and not defined in these rules but defined in the Act shall have the meanings respectively assigned to them in the Act.
RULE 3 SALARY OF OFFICERS AND EMPLOYEES OF THE APPELLATE TRIBUNAL
The nature and categories of officers and employees of an Appellate Tribunal and the scale of pay thereof shall be as specified in the Schedule appended hereto.
RULE 4 CONDITIONS OF SERVICE
The conditions of service of the officers and employees of an Appellate Tribunal in the matter of pay, allowances, leave, joining time, joining time pay, provident fund, age of supernnuation, pension and retirement benefits, medical facilities, and other conditions of service, shall be regulated in accordance with such other rules and regulations as are, from time to time, applicable to officers and employees of the Central Government belonging to Group 'A', Group 'B', Group 'C' and Group 'D' as the case may be, and drawing the corresponding scales of pay.
HOUSING FINANCE INSTITUTION DEBT RECOVERY APPELLATE TRIBUNAL (SALARIES, ALLOWANCES AND OTHER TERMS AND CONDITIONS OF SERVICE OF THE PRESIDING OFFICER ) RULES, 2002.
No. G.S.R. 339(E), dated 7th May, 2002. - In exercise of the powers conferred by section 54A of the National Housing Bank Act, 1987 (53 of 1987), the Central Government hereby makes the following rules, namely:-
RULE 1 SHORT TITLE AND COMMENCEMENT
(1) These Rules may be called the Housing Finance Institution Debt Recovery Appellate Tribunal (Salaries, Allowances and other Terms and Conditions of Service of the Presiding Officer ) Rules, 2002.
(2) They shall come into force on the date of their publication in 'the Official Gazette.
RULE 2 DEFINITIONS
- In these rules, unless the context otherwise requires,-
(a) "Act" means theNational Housing Bank Act, 1987-(53 of 1987);
(b) "Presiding Officer" means a person appointed as Presiding Officer of an Appellate Tribunal under section.36J-of the Act;
(c) All other words and expressions used and not defined in these rules but defined in the Act shall have the meanings respectively assigned to them iri the Act.
RULE 3 SALARY
The Presiding Officer of an Appellate Tribunal shall be paid a salary in the scale of pay of Rs. 18,400- 22,400: Provided that in the case of an appointment of a person as a Presiding Officer, who has retired as a District Judge, or who has retried from service, under the Central Government or a State Government and who is in respect of or has received or has become entitled to receive any retirement benefit by way of pension, gratuity, employer's contribution to the Contributory Provident Fund or other forms of retirement benefits, the pay of such Presiding Officer shall be reduced by the gross amount of pension or employer's contribution to the Contributory Provident Fund or any other form of retirement benefit, if any, drawn or to be drawn by him.
RULE 4 DEPUTATION DUTY ALLOWANCE
If a person holding the post on a regular basis in the scale of pay of Rs. 18,400-22,400 is appointed as Presiding Officer of a Appellate Tribunal on tenure basis and holds lien in his parent cadre, he shall he paid a salary in the scale of pay specified in rule 3 plus a deputation duty allowance at a rate as are applicable to Group 'A' officers of the Central Government drawing an equivalent pay.
RULE 5 DEARNESS ALLOWANCE AND CITY COMPENSATORY ALLOWANCE
The Presiding Officer of an Appellate Tribunal shall be entitled to draw dearness allowance and city compensatory allowance at the rate admissible to Group 'A' officers of the Central Government drawing an equivalent pay.
RULE 6 LEAVE
The Presiding Officer of an Appellate Tribunal shall be governed in matters relating to his rights in respect of leave by the Central Civil Services (Leave) Rules, 1972.
RULE 7 LEAVE SANCTIONING AUTHORITY
The President of India shall be the authority competent to sanction leave to the Presiding Officer of the Appellate Tribunal.
RULE 8 PENSION/PROVIDENT FUND
In case a service Judge or an Officer of the Centra! Government or State Government is holding the post of Presiding Officer, the service rendered in the Appellate Tribunal will count for pension to be drawn in accordance with the rules of the service to which he belongs. He shall also be governed by the provisions of the General Provident Fund (Central Services) Rules, 1960. In all other cases, a person shall be entitled to Contributory Provident Fund (India) Rules, 1962.
RULE 9 TRAVELLING ALLOWANCES
The Presiding Officer of an Appellate Tribunal while on tour or on a transfer (including the journey undertaken to join the Appellate Tribunal or on the expiry of his term with the Appellate Tribunal to proceed to his home town) shall be entitled to the travelling allowances, daily allowances, transportation of personal effects and to other similar matters at the same scales and at the same rate as are applicable to Group 'A' officers of the Central Government drawing an equivalent pay.
RULE 10 LEAVE TRAVEL CONCESSION
The Presiding Officer of an Appellate Tribunal shall be entitled to leave travel concession at the same rates and at the same scale as are applicable to Group 'A' officers of the Central Government drawing an equivalent pay.
RULE 11 FACILITY OF CONVEYANCE
The Presiding Officer of an Appellate Tribunal shall be entitled to a staff car and one hundred and fifty litres of petrol every month or actual consumption of petrol per month, whichever is less.
RULE 12 ACCOMMODATION
(1) Every person appointed as a Presiding Officer of an Appellate Tribunal shall be eligible, subject to availability, to the use of official residence from the general pool accommodation of the type admissible to a Group 'A' officer of the Central Government, who is working at the place where such Appellate Tribunal is located and drawing an equivalent pay on payment of the licence fee at the rates specified by the Central Government from time to time.
(2) Where the Presiding Officer of an Appellate Tribunal occupies an official residence beyond permissible period, he shall be liable to pay additional licence fee or penal rent, as the case may be, and he shail be liable to eviction in accordance with the rules applicable to Central Government servants.
(3) Where the Presiding Officer of an Appellate Tribunal does not avail of facility of official residence under sub-rule (1), he shall be entitled to House Rent Allowance as admissible to Group 'A' officers of the Central Government drawing equivalent pay.
RULE 13 FACILITIES FOR MEDICAL TREATMENT
The Presiding Officer of an Appellate Tribunal shall be entitled to medical treatment and hospital facilities as provided in the Contributory Health Services Schemes Rules, 1954 and in places where the Central Health Services Scheme is not in operation, the said Presiding Officer shall be entitled to the facilities as provided in the Central Services Medical Attendance Rules, 1994.
RULE 14 RESIDUARY PROVISION
Matters relating to the conditions of services of the Presiding Officer of an Appellate Tribunal with respect to which no express provision has been made in these rules shall be referred in each case to the Central Government for its decision and the decision of the Central Government thereon shall be binding on the said Presiding Officer.
RULE 15 POWER TO RELAX
Subject to the provisions ofsection 36N-, the Central Government shall have power to relax the provisions of any of these rules in respect of any class or categories of persons.
HOUSING FINANCE INSTITUTIONS DEBT RECOVERY APPELLATE TRIBUNAL (PROCEDURE FOR APPOINTMENT AS PRESIDING OFFICER OF THE APPELLATE TRIBUNAL) RULES, 2002
No. G.S.R. 340(E), dated 7th May, 2002. - In exercise of the powers conferred by section 54A of the National Housing Bank Act, 1987 (53 of 1987), the Central Government hereby makes the following rules, namely:-
RULE 1 SHORT TITLE AND COMMENCEMENT
(1) These Rules may be called theHousing Finance Institutions Debt Recovery Appellate Tribunal (Procedure for Appointment as Presiding Officer of the Appellate Tribunal) Rules, 2002 -.
(2) They shall come into force on the date of their publication in the Official Gazette.
RULE 2 DEFINITIONS
- In these rules, unless the context otherwise requires,-
(a) "Act" means theNational Housing Bank Act, 1987-(53 of 1987);
(b) "Appellate Tribunal" means the Appellate Tribunal established under section 36-I-of the Act;
(c) "Presiding Officer" means a person appointed as Presiding Officer of an Appellate Tribunal under section 36J-of the Act;
(d) all other words and expressions used and not defined in these rules but defined in the Act shall have the meanings respectively assigned to them in the Act.
RULE 3 METHOD OF APPOINTMENT UNDER SECTION 36J OF THE ACT
(1) For the purpose of appointment to the post of a Presiding Officer, there shall be a Selection Committee consisting of-
(i) the Chief Justice of India or a Judge of the Supreme Court of India as nominated by the Chief Justice of India;
(ii) the Secretary to the Government of India in the Ministry of Finance (Department of Economic Affairs);
(iii) the Secretary to the Government of India in the Ministry of Law and Justice;
(iv) Special/Additional Secretary to the Government of India in the Ministry of Finance, Department of Economic Affairs (Banking Division), or an officer not below the rank of Joint Secretary in the Banking Division nominated by
the Special/Additional Secretary in the Banking Division, who shall also be the convenor of the Selection Committee;
(v) Chairman, National Housing Bank.
(2) The Chief Justice of India or the Judge of the Supreme Court shall be the Chairman of the Selection Committee.
(3) Any three members of the Committee including the Chairman shall from a quorum for meeting of the Committee.
(4) The Selection Committee may devise its own procedure for selection a candidate for appointment as Presiding Officer.
(5) The Selection Committee shall recommend persons for appointment as Presiding Officer from amongst the persons on the list of candidates prepared by the Ministry of Finance after inviting applications thereof by advertisement.
(6) The Central Government shall on the basis of the recommendations of the Selection Committee make a list of persons selected for appointment as Presiding Officer and the said list shall be valid for a period of two years. The appointment of Presiding Officer shall be made from the list so prepared.
RULE 4 MEDICAL FITNESS
No person shall be appointed as a Presiding Officer unless he is declared medically fit by a Medical Board to be constituted by the Central Government for the purpose unless he has already been declared fit by an equivalent authority.
RULE 5 INTERPRETATION
If any question arises relating to the interpretation of these rules the same shall be referred to the Central Government for its decision.
RULE 6 SAVING
Nothing in these rules shall affect reservations, relaxation of age limit and other concessions required to be provided for the Scheduled Castes, Scheduled Tribes, other Backward Classes, Ex-servicemen and other special categories of persons, in accordance with the other issued by the Central Government from time to time in this regard.
RULE 7 OATH OF OFFICE AND SECRECY
Every person appointed to be Presiding Officer undersection 36J-of the Act shall, before entering upon his office, make and subscribe an oath of office and secrecy in the Forms annexed hereto.
NATIONAL HOUSING BANK (SLUM IMPROVMENT AND LOW COST HOUSING FUND) REGULATIONS, 1993
REGULATION 1 SHORT TITLE AND COMMENCEMENT
(i) These regulations may be called the National Housing Bank (Slum Improvement and Low Cost Housing Fund) Regulations, 1993.
(ii) They shall come into force on the date of their publication in the Official Gazette.
REGULATION 2 DEFINITIONS
: In these regulations, unless the context otherwise requires-
(i) "Act" means theNational Housing Bank Act, 1987 (53 of 1987)-;
(ii) "Fund" means the special fund referred to in clause (hh) ofSection 14-of the Act;
(iii) Words and expressions used herein and not defined in these regulations but used in the Act have the meanings respectively assigned to them in the Act.
REGULATION 3 ESTABLISHMENT OF THE FUND
: (i) There shall be established for the purposes of these regulations a special fund for financing Slum Improvement and Low Cost Housing for the poor.
(ii) The fund shall be held and administered by the Board.
REGULATION 4 CREDIT TO THE FUND
: The fund shall consist of-
(i) forty per cent of the amount deposited by any person voluntarily to the National Housing Bank in accordance with the scheme framed under section 14(hh)-of the Act for the purpose ofvoluntarily Deposits (Immunities and Exemptions) Act, 1991 (47 of 1991);
(ii) all amounts received towards its corpus from Government or any other person:
(iii) all amounts received for the purpose of the fund by way of loans, gifts, grants, donations, benefactions or otherwise from the Government or any other person in or outside India;
(iv) repayments or recoveries in respect of loans and advances or other facilities granted from the fund;
(v) income or profits from investments made from the fund;
(vi) income accruing or arising to the fund by way of interest or otherwise on account of the application of the fund in accordance with the provisions ofRegulation 5-.
REGULATION 5 DEBITS TO THE FUND
: To the fund shall be debited-
(i) such amounts as may, from time to time, be disbursed or spent for the purposes indicated at Paragraph 6 of the National Housing Bank (Voluntary Deposits) Scheme, 1991;
(ii) such amounts as may be required for discharging the liabilities in respect of loans received for the purpose of the fund:
(iii) any loss arising on account of investment made out of the fund; and
(iv) such expenditure arising out of or in connection with the administration and utilisation of the fund.
REGULATION 6 AUDIT OF THE FUND
: (1) The fund shall be audited by the Auditors appointed under sub-section (1) ofSection 40-of the Act and the provisions of sub-sections (2) to (5) thereof shall apply for the purposes of this regulation.
(2) The charges on account of audit shall be paid out of the fund.
REGULATION 7 ANNUAL ACCOUNTS OF THE FUND
: The annual accounts of the fund shall be prepared and set out in the following manner:-
(a) a balance sheet as on 30th June of the year as speciFied in Schedule I annexed hereto;
(b) a profit and loss account for the year ended 30th June as specified in Schedule II annexed hereto.
NATIONAL HOUSING BANK (RECOVERY OF DUES OF THE APPROVED INSTITUTIONS) GENERAL REGULATIONS, 2002
G.S.R. 342.—In exercise of the powers conferred by Sec. 55 of the National Housing Bank Act, 1987 (53 of 1987), the National Housing Bank, with the previous approval of the Reserve Bank of India and in consultation with the Central Government, hereby makes the following regulations, namely:—
REGULATION 1 SHORT TITLE AND COMMENCEMENT.
(1) These regulations may be called theNational Housing Bank (Recovery of Dues of the Approved Institutions) General Regulations, 2002-.
(2) They shall come into force on the date of their publication in the Official Gazette.
REGULATION 2 DEFINITIONS.
In these regulations, unless the context otherwise requires,—
(a) "Act" means theNational Housing Bank Act, 1987;
(b) "agent" means a person duly authorised by a party to present application or to give reply on its behalf to the recovery officer or to the Appellate Tribunal as the case may be;
(c) "appeal" means an appeal made to the Appellate Tribunal under Sec. 36-S of the Act;
(d) "appellant" means a person or an approved institution making an appeal to the Appellate Tribunal under Sec. 36-S of the Act;
(e) "applicant" means an approved institution or person making an application to the recovery officer under Sec. 36-E;
(f) "application" means an application made to the recovery officer under Sec. 36-E;
(g) "Registrar" means the Registrar of an Appellate Tribunal and includes an officer of such Appellate Tribunal who is authorised by the Presiding Officer to function as Registrar;
(h) "Registry" means the Registry of the Appellate Tribunal;
(i) all other words and expressions used and not defined in these regulations but defined in the Act shall have the meanings respectively assigned to them in the Act.
REGULATION 3 FORM OF APPLICATION.
Every application to the recovery officer for recovery of dues under Sec. 36-E of the Act shall be in Form No. 1.
REGULATION 4 DOCUMENTS TO ACCOMPANY THE APPLICATION.
Every application under Regulation 3 shall be accompanied by a paper book containing—
(i) a statement showing details of the assistance due from a respondent and the circumstances under which such an assistance has become due;
(ii) all documents relied upon by the applicant and those mentioned in the application;
(iii) index of documents; and
(iv) where the parties to the suit or proceedings are being represented by an agent, documents authorising him to act as such agent.
REGULATION 5 FORM OF NOTICE TO THE BORROWER.
A notice of demand to be served on the borrower under sub-sec. (1) of Sec. 36-F shall be in Form No. 2.
REGULATION 6 FORM OF APPEAL.
Every memorandum of appeal to the Appellate Tribunal under Sec. 36-S of the Act shall be in Form 3.
REGULATION 7 FEE.
The amount of fee payable in respect of appeal under Sec. 36-S shall be 1% of the amount due subject to a minimum of Rs. 2,500/- and a maximum of Rs. 30,000/-. Procedure in Sales of Immovable Properties
REGULATION 8 SALE AND PROCLAMATION OF SALE.
(1) The recovery officer may direct that any immovable property mortgaged or assigned to the approved institution as security for any assistance in respect of which default has been made or such portion thereof as may seem necessary to satisfy the dues of the approved institution together with all costs, charges and expenses incurred by the recovery officer, shall be sold.
(2) Where any immovable property is ordered to be sold, the recovery officer shall cause a proclamation of the intended sale to be made in the language of the district where the property is situate.
REGULATION 10 MODE OF MAKING PROCLAMATION
(1) Every proclamation for the sale of immovable property shall be made at some place on or near such property by beat of drum or other ;ustomary method and a copy of the proclamation shall be affixed on a conspicuous part of the property and also upon a conspicuous part of the office of the recovery officer.
(2) Where the recovery officer so directs, such proclamation shall also be published in such other manner including publication in the local newspaper and the cost of such publication shall be deemed to be the cost of the sale.
REGULATION 11 TIME AND CONDUCT OF SALE
(1) The sale shall not take place on a Sunday or other holiday, or till after the expiration of at least thirty days from the date on which the copy of the proclamation was affixed in the office of the recovery officer or affixed on the property, whichever is later.
(2) The sale shall be by public auction and shall be conducted either by the recovery officer in person or by a person specially appointed by him in this behalf, if the recovery officer is of the opinion that it will be more advantageous to appoint a person to sell a property.
(3) Where the recovery officer has appointed a person to sell a property, he shall also fix the remuneration of such person for such services and the remuneration payable to such person shall be deemed to be costs of the sale.
REGULATION 12 POWER TO POSTPONE SALE.
The recovery officer may from time to time postpone the sale.
REGULATION 13 STAY OF SALE.
If at any time before the bidding at the auction is completed, the borrower pays, the dues of the approved institution together with all costs, charges and expenses incurred by the recovery officer in respect of the property which has been proclaimed for sale, to the recovery officer or to the person appointed by him for conducting the sale, or proves to the satisfaction of such person that he has already paid the same to the approved institution, the sale shall be stayed.
REGULATION 14 PAYMENT OF DEPOSIT BY HIGHEST BIDDER.
When the highest bid at the auction has been ascertained, the person who made that bid shall, on the requisition of the recovery officer or the person appointed by him, as the case may be, conducting the sale, deposit twenty five per cent, of the amount of his bid, and shall, on deposit thereof, be declared to be the purchaser subject to the provisions hereinafter contained:
Provided that no sale under this regulation shall be made if the amount of bid by the highest bidder is less than the reserve price, if any specified under clause (e) of sub-regulation (1) ofRegulation 9-.
REGULATION 15 CONSEQUENCES OF FAILURE TO PAY DEPOSIT.
If the person who made the highest bid fails to pay the deposit as required byRegulation 14-, the property shall forthwith be put up again and sold, and all expenses attending the first sale, and the deficiency of price, if any, which may happen on resale, may be recovered from him by the recovery officer.
REGULATION 16 TIME FOR PAYMENT IN FULL.
The full amount of the purchase money shall be paid by the purchaser within fifteen days of the bid.
REGULATION 17 PROCEDURE IN DEFAULT OF PAYMENT.
In default of payment of the full amount of the purchase money within the period mentioned inRegulation 16-, the deposit referred to inRegulation 14-shall after defraying the expenses of the sale, be forfeited and be applied in reduction of the dues, and the property shall be resold, and the defaulting purchaser shall have no claim to the property or to any part of the sum for which it may subsequently be sold.
REGULATION 18 APPLICATION TO SET-ASIDE SALE.
(1) At any time within thirty days from the date of the sale, application may be made to the Housing Finance Institutions Debt Recovery Appellate Tribunal to set-aside the sale on the ground of some material irregularity or mistake in publish- ing or conducting it :
Provided that a sale shall be set-aside only on the ground that the appellant has sustained injury by reason of such material irregularity or mistake in non-service of notice requiring the borrower to pay the dues or in publishing the proclamation or in the conduct of the sale.
REGULATION 19 ORDER CONFIRMING OR SETTING ASIDE SALE.
(1) After the expiration of thirty days from the date of the sale, if no application underRegulation 18-has been made, or if such application I has been made and rejected, the recovery officer shall make an order confirming the sale, and, if such application has been made and allowed, the recovery officer shall make an order setting aside the sale.
(2) An order made under this regulation shall be final.
REGULATION 20 REFUND OF PURCHASE MONEY ON SETTING ASIDE OF SALE.
Whenever the sale of any property is set-aside, the purchaser shall be entitled to receive back his purchase money.
REGULATION 21 PROCLAMATION AFTER POSTPONEMENT OR ON RESALE.
A sale made after a postponement underRegulation 12-and a resale consequent on a purchaser's default underRegulation 17-or on the setting aside of a sale underRegulation 19-, shall be made after the issue of a fresh proclamation in the manner hereinbefore prescribed for the sale.
REGULATION 22 ON CONFIRMATION OF SALE POSSESSION AND CERTIFICATE TO BE GRANTED TO PURCHASER.
(1) After the sale has been confirmed in manner aforesaid the recovery officer shall put the person declared to be the certified purchaser into possession of the property sold, and shall grant him a certificate to the effect that he has purchased that property,
(2) The certificate shall state that the property was sold for the recovery of the amount due to an approved institution and shall set forth the encumbrances, grants, contracts and right of occupany, if any, specified in the proclamation of the sale.
(3) Every certificate granted under sub-regulation (1) shall be deemed to be a document registrable as a conveyance under the provisions of theRegistration Act, 1908(16 of 1908),
(4) The certified purchaser of any immovable property shall be entitled to all rents and profits falling due in respect of the property after the date of the confirmation of the sale and be liable for all dues, cess and taxes falling due in respect thereof after that date. Procedure for Sale of Movable Property
REGULATION 23 SALE OF MOVABLE PROPERTY.
(1)The recovery officer may direct that a movable property mortgaged, pledged, hypothecated or assigned to the approved institution as security for any assistance in respect of which default has been made or such portion thereof as may seem necessary to satisfy the dues of the approved institution together with all costs, charges and expenses incurred by the recovery officer, shall be sold.
(2) Where any movable property is order to be sold, the recovery officer shall conduct the sale as nearly as may be, in accordance with the law for the time being in force for the sale of movable property for the recovery of arrears of income tax under theIncome Tax Act, 1961(43 of 1961).
REGULATION 24 PROCEEDS OF SALE.
When a sale of immovable or movable property under these regula- tions has been confirmed, the proceeds of the sale shall be applied by the recovery officer in accordance with the provision ofSec. 36-G of the National Housing Bank Act, 1987(53 of 1987).
REGULATION 25 SAVE AND EXCEPT THE PROVISIONS.
Save and except the provisions of the regulations herein contained, the recovery officer shall be guided by the provisions of the Second and Third Schedules to theIncome tax Act, 1961and theIncome Tax (Certificate Proceedings) Rules, 1962, as in force from time to time in the matter of sale of the immovable and movable property.
