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217. Recovery of loans and advances made by Government

  1. Notwithstanding anything contained in the Kerala Local Authorities Loans Act 1963, the Government may, by order, direct any person having custody of the funds of the Panchayat to pay to them in priority to any other charges against such fund, except charges for the service of authorised loans any loan or advance made by them to the Panchayat for any purpose to which its funds may be applied under this Act.
  2. The person to whom the order referred to in sub-section (1) is addressed shall be bound to comply with such order.