REVISING THE FORFEITURE ACT: IF THERE ARE NO BIDDERS, THE PROPERTY WILL BE TAKEN OVER BY THE GOVERNMENT
REVISING THE FORFEITURE ACT: IF THERE ARE NO BIDDERS, THE PROPERTY WILL BE TAKEN OVER
BY THE GOVERNMENT
The dues can be paid within five years and the property can be acquired
Kerala Revenue Recovery Act, 1968 amends to include a provision that the government can take over the fixed assets of individuals or firms due to indebtedness for one rupee, even if there are no bidders for fixed sum. The owner will have a chance to own the property after paying the dues within five years. After this period it will be completely taken over by the government.
If the debt is owed to the government, the government can decide to take it over. The government can take action with their permission in the case of goods for which the government is taking revenue recovery action on behalf of other institutions. A provision for this will be included in Section 50 of the Kerala Revenue Recovery Act. In this way, goods acquired by the government are believed to be under the ‘Bought in Land’ Act. Although there was a reference in the earlier law that the government can take over, the present course of action is to clarify the matter and include specific provisions.
Interest shall not be charged in excess of the amount stipulated in the agreements between the owner of the property and the institution liable to him while confiscating the property for revenue recovery. In the absence of such provision in the contract, the limit of chargeable interest shall be limited to 9%. At present the interest is charged up to 18%. The draft law amendment prepared by the Revenue Department will be approved by the Law Department. After the approval of Chief Minister, it will be considered by the Cabinet. It will then be introduced in the legislature or an ordinance will be issued.