PROVISIONS FOR SPONSORING BODY WHOSE LAND IS MORTGAGED AGAINST LOAN

Uttar Pradesh Shasan In pursuance of the provisions of clause (3) of Article 348 of the Constitution of India, the Governor is pleased to order the publication of the following English translation of Order No.788 /70-1-2021-20(4)/2014 T.C. IV, dated June 17 , 2021 Order Lucknow : Dated: June 17, 2021 WHEREAS the Uttar Pradesh Private Universities Act, 2019 (U.P. Act no. 12 of 2019) hereinafter referred to as the said Act was enacted as an umbrella Act for governing all private universities under a common law and to provide for uniform provisions for monitoring the establishment of new private universities and incorporation of existing private universities in the State of Uttar Pradesh ; AND WHEREAS section 3 of the said Act lays down the conditions for the establishment of a University; AND WHEREAS clause (b) of the said section provides :- “duly possess contiguous land of minimum twenty acres in urban areas or fifty acres in rural areas earmarked for the university : Provided that, the sponsoring body shall not sell, transfer or lease out such land or any part thereof and also shall not use it for any purpose other than the purposes mentioned in this Act for the functioning of the University Provided further that such land shall not be mortgaged to any person other than a bank or financial institution established under any law for the time being in force for any purpose other than availing loan for establishing the university.” AND WHEREAS ‘regularization of the matter of taking loans against mortgages of the proposed land for setting up a private university, before a bank or a financial institution, is not defined in the said Act ; Short title and commencement 1 (1½ This order may be called the Uttar Pradesh Private Universities (Removal of Difficulties) Order 2021. (2) It shall come into force on the date of publication in the Gazette. 2 After examining the proposals received for the establishment of private universities, it has been found that certain sponsoring bodies have taken loans by holding land with banks or financial institutions for construction of buildings of previously running institutions/colleges etc. on the land proposed for the university. NOW, THEREFORE, in order to removal of difficulties, it is hereby clarified that an affidavit shall be obtained from the sponsoring body in which an undertaking will be given by the sponsoring body that any loan so obtained will not be used in any form for purposes other than the proposed university, the buildings and assets already constructed on the land proposed for the establishment of the private university and the running colleges will remain part of the proposed private university, the no-objection granted by the loan provider for the establishment of the private university will be made available, the loan installments will continue to be paid regularly, there will not be any reduction in the charge of the bank/lender on the mortgaged property, and immediately after the establishment of the university the charge will be transferred in the name of the university in the relevant documents by the competent authority the proposed land will not be kept mortgage in case of taking loan from bank/financial institution for any purpose other than university, detailed information of future loans will also be provided to the government in time and a copy of this affidavit will also be made available to the bank/lending institution by the sponsoring body and its information will be presented to the government. The format of the affidavit prepared as above is attached. Attachment- format of Affidavit By Order, Apar Mukhya Sachiv dze la[; k _.k fy;s tkus dk fnukad uke uke] gS _.k dh _.k fy;s tkus dk Hkqxrku fd;s tkus k¡ la[;k x;s ¼d½---------------------- ¼[k½---------------------- ¼x½----------------------