Can a bank accept agricultural land as gift for construction iof branch building?
imchandrasekharaiah
(Querist) 01 July 2013
This query is : Resolved
one of the villagers is interested in donating the piece of agricultural land in Karnataka to build a Bank building to house a branch. Can the bank accept it.
Raj Kumar Makkad
(Expert) 01 July 2013
There is no legal hurdle in accepting the gift on the part of the bank.
malipeddi jaggarao
(Expert) 02 July 2013
But the Bank has convert the agricultural land into non-agricultural land before going for construction. The conversion application has to be filed before the local revenue authorities along with the gift deed.
Nadeem Qureshi
(Expert) 02 July 2013
Yes, the bank can accept the gift.
Guest
(Expert) 02 July 2013
Depends upon the policy of the concerned bank, provided also the bank is a body, as an independent public limited company.
Raj Kumar Makkad
(Expert) 02 July 2013
What ever be the status of the bank, there is no restriction of its accepting the gift.
Rajendra K Goyal
(Expert) 02 July 2013
Bank can accept the gift and construct the building after change of land use.
Guest
(Expert) 02 July 2013
Gift can be given only to a person or a legally declared (arificial) person, like a company, etc.
prabhakar singh
(Expert) 02 July 2013
Since all juristic persons have right to hold properties in their name just like natural persons there would be no hardship on this score,Dhingra Ji.
You may kindly recall we even GIFT to temples in name of GOD pranpratishthit there in who legally is recognized as juristic person;so are there MATH and MAHANTS.
Guest
(Expert) 02 July 2013
Prabhakar ji,
It is the trust of the temple, not the temple, which receives the gift.
prabhakar singh
(Expert) 02 July 2013
You are partially right Dhingra ji.
But in practice there are found to be many temples built without creation of any trust
where property is deemed to be endowed upon deity and management vests in it's poojari
and in government records properties are found recorded as Shree Thatkur ji or so and so virajman vajariye sarvarakar(poojari)so and so.
So goes true in MATH cases too Where MAHANTS are treated as manager though court
treat them with more powers than that of a poojari.(kindly refer to a legendary work in Tagore law lectures)
Trusts,registered, NGOs,Cooperative societies,companies and those aforesaid math and temples are treated to be artificial juristic persons capable of owning properties albeit they need a human to manage on their behalf as trustees,Managing bodies,Board of Directors,poojari or mahant.
Guest
(Expert) 02 July 2013
Prabhakar ji,
Your apprehension may be correct, but I have based my reply only on the provisions of law instead of local conventions. Moreover, endowing property in the name of God, like Thakur ji, merely denotes a benami transaction in law, where the registrar might have assumed the name Thakur ji as a living person due to misunderstanding or misconception. Law permits transfer of property from a living person to another living person or a company/association, etc.
I hope your doubt can be satisfied by going through sec.5 of the Transfer of Property Act, which describes, as follows:
"5. In the following sections "transfer of property" means an act by which a living person conveys property, in present or in future, to one or more other living persons, or to himself and one or more other living persons; and "to transfer property" is to perform such act."
"In this section "living person includes a company or association or body of individuals, whether incorporated or not, but nothing herein contained shall affect any law for the time being in force relating to transfer of property to or by companies, associations or bodies of individuals."
Hope I am correct in my interpretation of the relevant law?
Guest
(Expert) 03 July 2013
@ Prabhakar ji,
You may kindly like to help me to correct, if I am wrong on law point on the issue, as per my last post.
