Legal Question in Banking Law in India

Greetings of the Day!!

We are running a Ltd company and for business purpose taken loan from a nationalized bank with the Collateral security of land.

Land is located just adjacent to Resident Colony and is within 8 Kms of Municipality. The land is vacant and not used for any agricultural purpose for last 6 years.

At the time of purchase it was registered as Agricultural land. Now the bank people asking for conversion of land as Non agricultural land. Is conversation is required ?

Thanks in advance.


Asked on 7/01/15, 1:05 am

1 Answer from Attorneys

Fca Prashant Chavan Expert Edge LLP

01.07.2015

Dear Sir / Madam,

If the Bank has sanctioned the business loan with the condition with a specified duration or time frame to get the agricultural land converted into non-agricultural land based, on assurances, circumstances and facts provided by you to the Bank, at the time of availing the loan, the conversion is necessary.

Regards,

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Answered on 7/01/15, 6:09 am


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