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(U.P. Act XXIV of 1953)

1953 · State unknown · central · act_text

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6 · [Provided that notwithstanding anything to the contrary contained in this Act or in any other law for the time being in force, it shall be lawful that before or after the issue of recovery certificate by the Cane Commissioner but at any time before the completion of the recovery proceedings, if it is found that the owner of the company of the concerned defaulter factory has given any loan or done investment under any legal arrangement to a subsidiary company, associate company or other company that is engaged or not engaged in manufacturing of sugar, and to whom under any contract, any amount is to be received from any Department of the State Government or from any Corporation or Board or any other institution constituted under any statutory rules, the State Government may for the purpose of ensuring payment of cane price arrears of sugarcane farmers, forfeit the loan or investment amount or an amount equivalent to the outstanding cane arrear amount and give necessary instructions to the Cane Commissioner to take further action.
1 · [(5)(a) Without prejudice to the provisions of the foregoing sub-sections, where the owner or any other person having control over the affairs of the factory or any other person competent in that behalf enters into an agreement with a bank under which the bank agrees to give advance to him 2 [on the security of sugar or ethanol (directly produced from the sugarcane juice or B-Heavy Molasses)] produced or to be produced in the factory, the said owner or other person shall provide in such agreement that 3 [a percentage determined by such authority and in such manner as may be prescribed] of the total amount of advance shall be set apart and be available only for repayment to cane-growers or their co-operative societies on account of the price of sugarcane purchased or to be purchased for the factory during the current crushing season from those cane-growers or from or through those societies, and interest thereon and, such societies' commission in respect thereof.

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