10. If the controlling authority, after any inspection provided for under section 8 or otherwise is satisfied that the money loaned is not being applied to the purpose or purposes for which it was lent or that the conditions on which it was lent are not being duly fulfilled, he may notwithstanding anything contained in the bond executed by the borrower, by order, declare that the loan or such part of it as he considers reasonable is immediately recoverable and a copy of the order shall be served upon the borrower.
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Section 1 · Short title, extent, and commencementSection 2 · DefinitionSection 3 · Chief Administrator and controlling authoritySection 4 · Limit of loansSection 5 · Procedure for sanctioning loansSection 6 · Security for repayment of loansSection 7 · Loan how repayableSection 8 · Inspection and supply of informationIndia Code, Government of India. Text fetched 17 Oct 2026. Check the linked official text and subsequent notifications when applying a provision.