Section 40: first charge of society

Q: What does Section 40 of The National Rural Employment Guarantee Act, 1983 (TNREGA) deal with?

Section 40 TNREGA pertains to "first charge of society". It is part of the The National Rural Employment Guarantee Act, 1983, a legislation enacted by the Parliament of India. Section 40 of The National Rural Employment Guarantee Act, 1983 (TNREGA) governs first charge of society. As verified on 19 May 2026.

Q: Is Section 40 TNREGA still in force?

Yes, Section 40 of the The National Rural Employment Guarantee Act, 1983 is currently in force across the Republic of India.

Q: What is धारा 40 TNREGA?

धारा 40 TNREGA is the Devanagari Hindi reference for Section 40 of the The National Rural Employment Guarantee Act, 1983. Section 40 of The National Rural Employment Guarantee Act, 1983 (TNREGA) governs first charge of society. As verified on 19 May 2026.

Q: What is Dhara 40 TNREGA?

Dhara 40 TNREGA is the Roman Hindi reference for Section 40 of the The National Rural Employment Guarantee Act, 1983. "Dhara" means "Section" in Hindi. Section 40 of The National Rural Employment Guarantee Act, 1983 (TNREGA) governs first charge of society. As verified on 19 May 2026.

Q: How to cite Section 40 of The National Rural Employment Guarantee Act, 1983?

Cite as: "Section 40, The National Rural Employment Guarantee Act, 1983 (TNREGA)" in legal briefs. For academic writing, use the BlueBook format: The National Rural Employment Guarantee Act, 1983, § 40 (India).

Law on Tips Editorial Board

(1)

Notwithstanding anything contained in any law for the time being in force and subject to the prior claim, if any, of the Government in respect of land revenue, arrears of revenue other than land revenue, loans granted and advances made, any debt or outstanding demand due to a registered society from any member or past member or the estate of a deceased member shall be a first charge -

(i) upon the crops or other agricultural produce of such member whether or not raised with any loan taken from the registered society by such member;

(ii) upon any cattle, fodder for cuttle, agricultural or industrial implements or machinery, or raw materials for manufacture, supplied or purchased in whole or in part out of the loan of money given by the registered society, or on any articles manufactured from raw materials so supplied, or purchased or on any workshop, godown, or place of business constructed or purchased out of any such loan; and

(iii) upon any movable property which has been hypothecated, pledged or otherwise mortgaged by the member with the society and remaining in the custody of the member, or as the case may be, forming part of the estate of the deceased member.

(2)

No property or interest in property which is subject to a charge in favour of a registered society under sub-section (1) shall be sold or otherwise transferred or converted in any manner without the previous written permission of the society.

(3)

A member or a past member or the nominee, heir or legal representative of a deceased member of a registered society shall, if so required by the society, deposit with or entrust to the custody of, the society such property as is subject to a charge under sub-section (1) at such place and in such manner as may be prescribed until the debt or outstanding demand due to the society is fully paid and shall also pay towards all expenses incidental to the removal, transport or maintenance of the property so deposited or entrusted to custody. The charge connected with the removal, transport or maintenance of such property shall be recovered from the member or the past member or the estate of the deceased member, as the case may be, in accordance with such scale as may prescribed.

(4)

Notwithstanding anything contained in any law for the time being in force, any transaction made in contravention of sub-section (2) shall be null and void.

(5)

The charge created by sub-section (1) in favour of a registered society shall be available as against any claim of the Government arising from a loan granted under the Land Improvement Loans Act, 1883 (Central Act XIX of 1883), after the grant of the loan by the society.