Notwithstanding anything contained in the laws in
force, the following matters shall be governed by the following:
(a) No coparcener of an employee shall, in consideration for his or her
partition share, be entitled to the moneys deposited with the Fund in
the name of the employee. Despite a judgment by a court, no
creditor shall be entitled to claim the moneys deposited with the
Fund in the name of the employee. No moneys deposited with the
Fund in the name of the employee shall be confiscated for any
offences including those punishable with confiscation of entire
property pursuant to the laws in force. Such moneys shall not also be
deducted or confiscated also for any government dues or arrears.
(b) No income tax shall be levied on the moneys deposited with the
Fund in the name of any employee and on profits of the Fund and on
the moneys deposited by the employee upon drawing the same from
the Fund out of the moneys so deposited with the Fund.
(c) In distributing the assets of a company in which any amount of the
Fund has been invested or which has borrowed a loan from the Fund,
upon the liquidation of the company, the Fund shall have the first
and foremost right in the assets of such a company for the
investment by the Fund, dividends thereon and outstanding and
recoverable amount of the loan. Even in cases where any amount of
the Fund is due and recoverable from any other person and such
person becomes insolvent, the Fund shall have the first and foremost
right in the assets of such a person for the amount to be recovered by
the Fund. Only after the recovery of the amount due and payable to
the Fund, other persons shall have the right in the remaining assets
of such a company or person.
(d) If any person fails to pay in time such advance, loan or interest as
required to be paid to the Fund in accordance in the deed, the Fund
may recover the amount of the Fund by foreclosing and auctioning
the house and land or other property furnished by such a person as a
security, usufruct or wealth guarantee in favor of the Fund after
Thirty Five days of the expiration of that time. If no one buys such
house and land on the auction sale, the Fund may take over the
ownership of that property. In such a circumstance, the government
offices responsible for maintaining the records of such property or
recovering the land revenue thereon shall do action whatever
required, including transmission, on the records maintained in these
offices.
(e) After the Fund has taken a property as a security, usufruct or wealth
guarantee (Jamanipatra) pursuant to Clause (d), the borrower shall
not furnish such a property as a security in favour of, or usufruct it or
otherwise transfer his or her title in it, to another person, and if the
registration making office is requested by the Fund to withhold that
property, the office shall withhold it.
(f) In lending a loan or advance against the security of an immovable
property to any person, the Fund may specify the repayment period
of more than Five years.