The Gujarat Money Lenders Act 2011

Irgfuqci GOVERIIMENT OF GUJARAT LEGISLATTVE AND PARLIAMENTARY AFFAIRS DEPARTMENT THE GUJARAT MONEY_LENDERS ACT, 2011. (GUJARAJT ACT NO.14 OF 2011) [As modified upto 3l.t August, 2022] o I2o22l I (Price : t 40-00) o ? o I n + hi - .t' -.*. t" I t i I t sflaq qqe GOVERNMENT OF GUJARAT LEGISLATTVE AND PARLIAMENTARY AFFAIRS DEPARTMENT THE GUJARAT MONEY-LENDERS ACT, 2011. (GUJARAT ACT NO.14 OF 2011) modified upto 31't August,2022] [As 120221 H!2039 I I I i { I I i I i I i ,l I 2011 : Guj, 14 I The Gujarut Money-Lenders Act, 2011 til 1+- TIM GUJARAT MPNEY-LENDERS ACT, 2011. CONTENTS PREAMBLE PAGENO. Sections. CHAPTERI PRELIMINARY I Short title, extent alld commencement. 1 2 Definitions. CHAPTER tI AUTHORITTES 3. Authorities for implementation of the AcL 5 CIIAPTERIII PROVISIONS RELATING TO REGISTRATION 4. Register of Money-Lenders. 6 5. No business of money-lending except regiskation. 6 6. Application for Registation. 6 7. Grant of Regishation. 8. Term of Registration, 8 9. Renewal of Registration. 8 10. Refrrsal for grant or renewal of registration. 9 11. Grant of driplicate certificate of Regish-ation. 10 12. Power of Registrar to inspect. 10 13. Suspension of Registration. 10 14. Application to Registar General lor cancellation ofRegistration. 10 15. Power ofRegistrar to cancel regisEation in certain circumstances. 11 t6. No compensation or refirnd of fees for suspension or cancellation of registration. t1 17. Money-Lender debarred from carrying on business during suspension or cancellation of l1 registration. tiil The Gujarat Money-Lenders AcL 20ll [201r : Guj. 14 . PREAMBLE PAGENO. Sections. CHAPTERIV $EARCHAI\D SEIZIJRES 1 8. Registar General and other ofiicers to have powers of civil courts for certain purposes. . 12 - 19. Powers of certain offrcers to require production of record on documents, search and seizure, etc. 12 20. Disposal of property pledged or mortgaged with Money-Lender carrying on business of moneyJending without valid regishation. 13 I i CHAPTERV ACCOI.INTS AI{D STATEMENTS 21. Duty of Money-Lender to keep accounts and fumish statements. 14 22. Delivery of statemnet ofyearly accounts and docunnets to debtors by Money-Lender. 15 23. Audit of accounts of Money-Lender. 16 24. Debtor not bound to admit correctness ofparticulars iD statements or pass book. 16 CHAPTERVI CERTAIN OTHE,R DUTIES OF MONEY.LENDERS 25. Money-Lender not to dispose off pawned articles before certain period. 16 26. Stay of suits by Money-Lender not holding valid regishation. 16 CHAPTERVII SI,IITSAND POWERS OF COIIRT 27. Procedure of Court in suits regarding loans. 17 28. Power of Cowt to limit interest recoverable il certain cases. t7 29. Power of Court to direct payement of decretal amount by instalLnents. 17 30. Reopening of hansactions. 17 . 31 Inquiry for taking accounts and declaring the amount due 18 32 Deposit in Court of money due to Money-Lender. 19 jr; I 2011 : Guj. 141 The Gujarat Money-Lendets Act, 20 tiirl 1 PREAMBLE PAGENO. Sections. CTIAPTERVIII RATES OF INTEREST, ASSIGNESS, ETC. 33. Limitation on rate of interest. t9 34. Prohibition of charge for expenses 6a !6qns by Money-Lender. 20 35. Notice and information to be given on'assignment of loan. 20 36. Application ofAct as respects assigness. 20 37. Manner of calculating interest. 21 CIIAPTER IX OFFENCES A}[D PENAIIIES 38. Enty of wrong sum in documents, etc. to be offence. 21 39. Prohibition against recoverv of loan or interest except in cash. 21 40. Penalty for molestation 2l 41. Penalty for salam| batta. dharmada, etc. 22 42. Penalty for contravention of section 5119,33 or 38. 22 43. Penalty for contravention of section 21 or section 22 23 44. General provision for penl ty. 23 45. Power of Court to suspend or catrcel registration in certain cases. 23 46. Offences by corporations. 24 47. Certain offences to be cognizble. 25 48. Cognizance of certain offences with sanction of Registrar. 25 49. Compounding of certain offences 25 50. hohibition ola[est and imprisonment of agricultural debtors in execution of decrees of money. 25 -ffi t IV .fre Gqbra lozey-bzlers,y'c4 20// /2011 : Guj. 14 Il PREAMBLE PAGENO.' Secfions. CIIAPTERX . MISCELLANEOUS 51. Officers and employees to be public servants. 26 52. Indemnity. 26 53. Provisiors of any other Act ia force saved. 26 54. Grant of copies of.docrrments on payment of fees. 26 55. Power to make nrles. 26 56. Power of State Government to exempt. 28 57. hovisions ofGuj.35 of 1976 not to atrect 28 58. Repeal and savings. 28 201I : Guj. 14 l The Gujarat Money-knders Act, 2011 1 GUJARAT ACT NO. 14 OF2011:" The Gujard Money-Lenders Act, 20 I I . [E{April2011.] Amended by Guj. I I of2015 Amended by Guj. 2 of20l8. AN ACT to regulate the transaction ofmoneyJending in the State of Guiarat. It is hereby enacted in the Sixty-second Year of the Republic of India as follows:- I CHAPTER PRELIMINARY 1. ( l)This Act may be called the Gujarat Money-Lenden Act, 2011 . Short title, ertent and commencement (2) It extends to the whole ofthe State of Gujarat. (3) It shall come hto force on such date as the State GoverDment may, by notification in the aficial Gazette, appoint. 2. In this Act, unless thd context otherwise requires, - Defrnitions, (1) "appointed day" means the date on which this Act comes into force; (2) "bank" means- (i)a banking company or a co-operative bdnk to which the Banki4 l0 of IN9. Regulations Act, 1949 applies; (ii)the State Bank of lndia constitr.rted under the State Bank of IndiaAct, 1955; 23 of 1955. (iii)a Subsidiary Bairk as defined in the State Bank of lndia 38 ofl9s9. (Subsidiary Banls) Act 1959; (iv)a conesponding new bank constituted under the Banking 5 of 190. Companies (Acquisition and Transfer of Undertakings) Act,l970, or the Banking Compo"ies (Acquisition and Transfer of Undertakings) Act, 1980; and of 19t0. 't0 . (v)a regtonal rural bank established under section 3 ofthe Regional 21 of 1Y76. Rural Ba-nks Act, 1976; . This Act was assented by the Governo! 0E&e 6s April.20lL t . For Sloremem ofobje€{s ed Re6ons, seeGujaa Govemment Goete El(tssordrllry, Pafi V draled l8uMEctt' 201I, Page No 2l-30 to 2l'34 I l 2 Ihe Giarat Money-Leiders Act, 2011 [2011 : Guj. 14 I I _ (3) "business of money-lending,, means the business of advancing loans, whether in cash or kind and whether or not in coDnection with or in addition to, any other busiaess and includes the business ofpayment ofloan by an agreement undei any law for the time being in force ; I (4) "capital" means a surn of money which a Money_Lender invests in the business of moneyJending; (5) "company" means a company as defined in ttre Companies Act, r of1956. 1956; . (6) "co-operative society" means a society registered or deemed to coj.lo have been registered under the Gujarat co-operative Societies 6.1, 1961 orirez or any other Act relating to co-operative societies aad includes a Multi stale co-operative Society registered under the Muiti state co-operative r orzooz. Societies Ac! 2002; (7) "debtor" means a person to whom a loan is advanced and includes a successor-in-interest or surety; (8) "interest" includes the sum to be made over and above principal amount lent, whether .the same is charged or sought to be recoveied specifcally by way of interest or otherwise, but does not include any sum lawfrrlly charged by Money-Lender as costs, charges, expenses, towards evaluation, assessrnent and creation ofttre security; (9) "Ioan" means an advance whether of money or in kind, at an interest, with or without security, and includes advance, discount, money paid for or on account of or on behalf'of or at the rcquest of aly persog or the forbearance to requte payment of money o*iog oo any account ylatsoever, and every agreement under any law for the time being in force (whatever its terms or form may be) which is in substance or effict a loan ofmoney, but does not include- . (a) a deposit of money or other property in a Govemment post office, a bank, a comFany or a co-operative society; . (b) a loanto, or by, or a deposit with a:ry society or association registered under the Societies Regisration Ac!. 1 960, or any other enactment relating )fiI of 1860 to a public, religious or charitable objeit; - (c) a loan advanced by the State Govemment or by any local authority authorized by the State Government; (d) a loan advanced to a Govemment edployee from a fund, established for the welfare or' assistance of Governmej employees and which is sanctioned by the Sta1e Government; . (e) a deposit of money with or a loan advanced by a co_operative society; (f) an advance made to a subscriber to, or a depositor in, a provident fi.rnd from the 3m6un1 5rending to his credit in the fund in accordance with the rules of the fund; _ __t ,;-:;.{. F: 2011 : Gui. 14 I The Gujoat Money-Lenders Act, 2011 3 (g) a loan to or by an inswance company as defined in the Tnsurance 4of1938. Act, 1938; (h) a loan advanced by a Government company as defined in the I of 1956. Companies Act 19561 (i) an advance made bona fif,e by any trader carrying on any business, other than money-lending, ifsuih advance is made ia the regular course of such bushess; O a loan advanced by the National Bank for Agriculture a::d Rural Development established under the National Bank for Agriculture and 6t orre8l. Rural Development Ac! 1981; ft) a loan advaaced by the Export-Import Bank of lndia established 28 of re8l. unf,s1 the Export-lmport Bank of Iadia Ac! I 98 1 ; O a loan advanced Uy the Smatt Industries Development Ba* of Indi4 esablished under the Small lndustries Development Bark of India 3e of I9s9. Act, 1989; (m) a loan advanced by the National Housing Banh constituted under s3 of le&r. ths \stional Housing Bank Act, 1987; (n) a loal advanced by State Financial Corporations established under 53 oflesl. ffis $1a19 Finansial Corporations Act, 1951; and (o) a loan advanced by a:ry institution- ( 1 ) established by or under an Act of Parliament or the legislatue of a State, which grants any loan or advance in pursuance ofthe provisions of that Act, or (2) notified in this behalf by the State Government, in consuitation with the Reserve Bank; ' ( l0) "Money-Lendet'' means- (i) an individual, or (ii) a Hindu Undivided Family, or (iii) a company, or (iv) a pawn-broker, or (v) an unincorporaled body of individuals, including a frm, who or which- (a) carries on the busi:ress of money-lending in the State, or (b) has his or its principal or subsidiary place ofsuch business in the State; 4 The Gujarat Money-Lenders Act, 20I I [201I :,Quj;;14.. / (11) "pawn-broker" means a Money_Lender who in the ordinpry course ofhts bwness aduances a loaa and lakes goods n paum as secuity hr paytnen t ofsucl /oaa, (12) 'prescribed" means prescribed by rules; I I (13) "principal" means, in relation to a loan, the amount actually advanced to the debtors; and if the loaa is in kind, the value of ttre quaatity of the thing or commodity advanced, calculated at the market rate of price of such thing or commodity prevailing on the date of the advance; (14) "provident fund" means a provident fund as defined in the Provident Funds Acl" 1925 and includes a government provideut flrnd and I li or 1e25. railway provident fund as defined in the said Ac[ (15) "registel' means a register of Money-Lenders maintained under section 4; ( I 6) "registation" means registration ganted to a Money-Lender under section 7; (17) "Registrar" mears Registrar of Money-Lenders appointed under section 3; *Regisfar (18) General" me,ns'the Regishar General of Money- Lenders appointed under section 3; and includes the Additional Registrar General of Money-Lenders; ( l9) 'tules" means rules made under this Acq (20) "State" means the State of Gujarat; (21) "Suit to which this Act applies,, means any suit or proceedings- (a) for the recovery of a loan made after the date on which this Act comes into force: (b) for thq enforcement of any security taken, or any agreement, made after the date on which this Act comes into force in respect oiany loan made either before or after the said date; or (c) for the redemption of any security given in respect of any loan Money-Lender; i advanced by a (22) "tadef' means a person who in tle regular course of business buys and sells goods or other properly whether movable or immovable, and includes- 2011 : Guj. 141 The G4jod Money-Lenders Act, 2011 5 (i) a wholesale merchant, (ii) a commission agent, (iii) a broker, (iv) a manufacturer, (v) a contactor, (vi) a factory owner, but does not include, a person who sells his agricrdttrral pmduce or cattle or buys agricultural produce or cattle for his use or an artisan Explanalion.- For the purposes of this clause, "an artisan" means a person who does not employ r4ore than ten workers ia a manufacturing process on any one day of the t*elve months immediately preceding. CEAPTER tr AUTEORITTE,S 3. (1) For carrying out the Purposes of this Ac! the State Govemment A im u r t l h e o m ri e ti t e rt s a t r i o o r n of appoint- sball (i) an officer to be called the Registrar General of Money-Lenders, and to assis him, may appoint Additional Registrar General of Money-Lenders antl Joint Registar General of Money-Lenders for lhe whole of the State of Guj arat; (ii) such number of Registrars of Money-Lenders, Assistant Registrars of Money-Lenders and other oTcers and persons with such designations as the State Government thinks necassary. (2) The State Government may, by notiication in the Aficial Gazette, specifi the areas of his jurisdiction within which the officer appointed under sub-section (1) shall exercise such powers and perform such duties as may be conferred or imposed upon them by or under this Act (3) The superintendeace aad contol for the proper executioa of .^*te'. the provisions ofthis Act and i6e ru(es nrade thereunde r shall vest in the ;,,i Registrar General *'i.i, ,l-i.j:r,. 6 The Gujarat Moneylenders Act, 2011 [20 ;:r CHAPTER III PZOADIO1YJZDZ4"WA???Zacn4.?Tox Reg[ster 4. Every Registrar shall maintain a.register of Money-Lenders in the of Money- Lenders. ples-cribed form, to whom registrationd have been granted for carrying on l I the business of money-lending in the area within his jurisdiction. I oI () No business 5. No Money-Lender shall commence or cary on the business of moneyJerdiug money-lending except in the area for which he has been granted a registration iXjillrrar. and except in accordAnce with the terms and conditionsofsuch reg-istration. (2) Non-banking finance companies registered under the provisiors of the Reserve Ba* of India Acl. 1934, with the Reserve Bank of India shall z or res+. be deemed to bave been registered for itre purposes of this Act and they shall intimate to the concemed Regishar about their such registration witl' the Reserve Bank of India in the prescribed proforma- Applicatiotr lor 6.(1) A person who intends to commence or to carry on the business Reglstration. of money-lendiog in any area may make an application in writing in the prescribed form.for the grant of regisration to the Regist-ar having jurisdiction. (2) An application under sub-section (l) shall contain the followlng padiculars, namely:- (a) ifthe application is by or on behalf of- (i) an individual, the name and address of such individual; (ii) a Hindu Undivided Family, the name and addresses of the manager and the adult coparceners of such family; (iii) a company, the name and addresses of the directors, ma"ager or principal officer managing it; (iv) an lnincorporated lody of individuals, the names and addresses of such individuals; and if such body is a firm, the names and addresses ofall its partners; (b) the name in which the applicant intends to carry on the business ofmoney-lending and fts nams 6fthe person who shall be responsible for the management of the business; (c) the area in which he intends to carry on the business and the name of the place at which he intends to carry on the business in ttrat are4 and if he intends to carry on,the business at more than one place in such area, the names of the principal place and other places at which he intends to carry on the business; (d) the name ofany other place outside such area, if any, at which he intends to carry on the business; (e) whether the person signing the application himself, or any of the adult co-parcenen ofa Hindu Undivided Family or any dtector, 2011 : Guj. 14 l The Gujarat Money-Lenders Act, 201 I l manager or the principal oficer of the company or any member of the unincorporated body.ofany partner ofthe firm on behalfofwhich such application has been made, as the case may be, has carried on the business of money-lending in the State in the year ending on the 31s day of March immediately preceding the date of the application either individually or in partnership, or jointly with any other coparcener or any other person and whether in the same name or in any other name; (f) the total amount ofthe capital along with its source wbich such person intends to invest in the business of money-lending in the year for which the application has been made; (g) if the places at which the business of money-lending is to be carried on are more tlan one, the names ofpersons who shall be in the management of the business at each such place; (h) such other particulars as may be prescribed. (3) The application made under sub-section (1) shall be siped- (a) (i) by the individual, if the application is made by an individual; (ii) by the manager of a Hindu Undivided Family, if the application is made on behalf of such family; (iii) by the managing director or'any other person duly authorized and having confiol of its principal place of business in the area in which it intends to carry on the business, if the application is made by a company or an unincorporated body of individuals; (iv) by ary partner of the partnership flrm, if the application is made by a flrm; or O) by an agent authorized in this behalf by a power of attorney, by the person authorized to sip such application referred to in ciause (a). (4) No application for grant of regrsration shall be entertained by the Regisrar unless it is accompanied by an application fee at the rates, as may be noffied by the Registar Cxineral from time to time. The fees payable under this .u5-5sstisa 5hall be non-refrrndable. 7. (1) On receipt ofan application made under section 6, the Regishar Grant of shall after making such inqulry as may be necessary and on payment of Registration. registration fees as may be prescribed by the Statb Government, grant the certifcate ofregisn'ation in such form aad subject to such conditions as may be imposed, and enter the name of such applicant in the regiser maintained under section 4, or may refirse to grant registration after recording the reasons for the saIrre 8 The Gujarat Money-l,enders Act, 201 t polr: cuiii:i (2) The registration graated under sub-section (i) shall speciff the area for which such registration is granted and the place at which the Money_ Lender intends to carry on his businesi in such area. f (3),/f tle,Aazey-Z czder rgraz/ed regrstatbn th resp ecl ofm ore tl aa one place of business in the area within tfts jrx.j5di ction of the Registar, the regishation shall specifo the principal place as well as all other places of his business and also the names of persons responsible for the management of the business at each such place. (4) If a Money-l,ender who holds a registation for carrying on the business ofmoney-lending in any area within thejurisdiction oftle Regisnar is desirous ofcarrying on such business in some other area in the State within the jurisdiction of some other Regisrar, he may make an application for. grant ofa regisfoation under section 6 to such other Registrar,'accompanied by the requisite registration fee a:rd true copies of certftcate of registation held by him and the. fees paid therefore. On receipt of the application as aforesaid, the Rggistrar may grant to the applicant the registration under sub-section (1) for such other area without making any in;uiry referred to in sub-section (l) unless there are reasonable grounL for making an inquiry. (5) The application fees paid under sub_section (l) or (a) shall not be refirnded, notwithstanding the fact that the registation is refused or the application is withdrawn. Term of 8. Subject to the provisions of this Ac!_ Registration. ^ (a) a registration granted under section 7 sha be varid for a period of five years Aom the date on which it is granted; - (b) a regisration validly in force onthe appointed day shall be valid till the next 3 I s day of March of the year in whi.h thi, e.t .L.". into force. Retrewal of .9. (1) On the expry of the period of validity of a registration under Registration. section 8, the registation shall be liable to be renewed on an'application for renewal made, in such form and with such fees and within such period as may be prescribed, before the expiry ofthe validity of the regishation: . -noUagA that the Regisbar may, in any case in which he is satisfied that the applicant could not make an ap plicadon for renewal ofa registation within tfig plesqribed period for reasons beyond his control, he may, for reasons to be recorded in writing, condone such delay; and may renew the registration ou payment ofsuch penalty as may be piescribed by the State Govemmen! in addition to the renewal fee. (2) The provisibns of section 6 shall, so far as may be, apply to an application for renewal ofa registration as if it were an application for grant ofa regisration. 2011 : Guj. 14 I The Gujarat Money-Lenders Act, 2011 o (3) Where an application for renewal of registration has been made to the Registrar within the period prescribed under sub-section (l) but has not been disposed ofbefore the expiry,ofthe period ofvalidity ofthe regishation under section 8, the registration'shall, notwithstanding the expiry of such period, be deemed to be valid until such application is disposed of- 10. (1) The gralt org re r ne o wa u l o n fre d gi s str : a - tio n shall not be refi:sed except Refusal for on any of the following :ru:ffiX.Xr' (a) that the applicant or any person responsible or proposed to be responsible for the management of his business as a Money- Lender is disqualified under this Act; (b)that the applicant has not comFlied with the provisions of this Act or the rules made thereunder in respect ofan application for the grant or renewal ofregistration; (c)that the applicant bas made wilflrl default in complying with., or knowingly acted in contravention of any provision of this Act; (d)that satisfactory evidence bas been produced that the applicant or any perscin tesponsible for the management of his business of moneyJending has- (i) knowingly participated in or connived at any fraud if or dishonesty in the conduct ofor connection witt, the business of moneyJending, or (ii) been found guilty ofan offence under Chapter XVII XLv of 1860 or section 465, 477 or 477 -A of Cbzpter XVII of the Indian Penal Code; (e)that the applicant haq made an application for grant or renewal ofregistration, during the period for which his registation bas been suspended or during the period for which he has been disqlalifigd un6ff this Act for holding regisUation; (f)that the applicant or the person responsible or proposed to be responsible for the management of the business of money- lsnding, being a member of a family of a Hindu Undivided pamity or a member of a board,of directors of a company or a member of an ttnincorporated body of individuals or a partner ofa 6rm who has been refirsed the grant or renewal ofregistration under any of the clauses (a) to (e); and (g)such other grounds as may be prewribed. ry (2)The Regist'ar shall, before refi:sing to grant or renew registration t .D.7e. -s0t -seet'oz a1)- 4v}tr ,o .he a)oPt'e' e @<ozabfc Q)D)@hz'<v of 10 The Gujoat Money-Lenders Act, 20tt : Guj.14 [2011 cause as to why the grart or renewal of,iegisuation should not be refused; and record the evidence adduced before him and the reasons for such refusal: (3) Aa appeal shall lie to the Registrar General against the order of the Registrar refixing the grant or renewal ofregishation under sub-section (1) and the decision ofthe Registrar General, thereon shall be final. Granl of 1l. When a certificate of registration is lost, mutilated, destroyed, torn duplicate or otherwise defaced, a duplicate certiflcate of registration may be granted certificate of to the Money-Lender on an application rnade to the Registrar along with Registration. such fees as may be prescribed by the Stite Govemment. Power of 12. The Regisrar shall, by an order, provide for the periodical inspection Registrar to inspect. by such officers appointed under this Act for the purposes of sections I 8 and 19. Suspension of (l) 13. Where a complaint ha-s been filed ia a court against a Money- Registra tion. Lender for contavention of any of the provisions of this Act or the rules made thereunder or any inquiry is pending under sub-section (2) ofsection 14 or under sub-section (1) of section 1S against such Money-Lender, the Registrar may suspend the regishation df such Money-Lender until the case is decided by the court or, as the case may be, final order in such inquiry is passed. (2) An appeal, shall lie ftom ttre order of the Registrar suspending registation under sub-section (l) to the Regisfar General, whose decision shall be final. lrjlT,.,_1 la. (l) Any person may file an applicarion to the Regisrar General ["X.*r:T"T for the cancellation of registratiotr issueg to a Money-Lendei on the ground cancellatiotr o1 that such Money-Lender has been gurlty of any act or conduct for which Registrarion. the Registrar may under section 10 reflrse the grant of registration. At the time of fr'ling such applicatioDb the person shall deposit such emount not exceeding rupees five hundred as the Regisbar General may direct. (2) On receipt of such application alongwith deposit, the Registar General shall hold such inquiry as he deems fit and if he is satisfied that the Money-Lender has been guilty of such act or conduct, he may direct the Registrar to cancel the regisnation of such Money-Lender and thereupon the Regisuar shall, by an order in writinE, cancel zuch registration: Provided that no such direction shall be issued without giving to such Money-Lender a reasonable opportunity ofbeing heard. (3) If in the opinion of the Registrar General, an application made under sub-section (1) is frivolous or vexatious, he may, out of the deposit made under sub-section (1), direct to be paid to the Money-Lender such amount as he deems fit as compensation and balatrce amount of deposit to b€ forfeited to the State Government and where no amoutt is directed to be paid to the Money-Lender direct'the whole amount to be forfeited to 2011 : Guj. 14 l The Gujarut Money-Lenders Act, 2011 11 the State Govemment, and in any other case the Registrar General may on completion of the proceedi:rgs wrder this section, direct the ]vhole amount of ttre deposit to be retumed to the depositor. (4) A Money-Lender whose registration has been cancelled under this section shall be disqualiied for holding registration in the State for such period, not exceeding three years, as the Regishar may direct. (5) Any Money-Lender who is aggrieved by the order of ttre Regishar under this section may file an appeal to the Staje Govemment within a period of sixty days from ttre date of receipt ofsuch order, and the order of the State Government on such appeal shall be fnal and shall not be called in question in any court. f5. (1) Notwithstanding .lu:ytling contained in secrion 14, if the Power of Regishar has rcason to believe with respect to any Money-Lender holding Registrar registration for ttre area within his jurisdiction that such Money_Lendei to c{trcel has been guilty of any act or conduct for which the Registar might under registratio n section 10 have refused the grant or renewal ofthe registation aad which in certai-n circumstancqs. act or conduct was not brought to the notice at the'time of grant or renewal of such registration, or that such Money-Lender has conkavened any of the provisions ofthis Act a-fter the grant or renewal ofsuch registation and if in the opinion of the Regisbar such contravention makes such Money_Lender unit for carrying on the busines5 of moneyJending, the Regishar may, after holding such inquiry as he deefrs fit and after giving to such Money_iender a reasonable opportunity ofbeing heard, by an order in writing, cancel such registration. (2) A Money-Lender whose registation has been cancelled under sub- section (1) shall be disqualified for holding registration in the Staft for such period, not exceeding three years as the Registrar may speciS in the order of cancellation of his registation. (3) A Money-Lender who is aggrieved by the order of the Registrar rnder this section may file an appeal wirhin 2 psriod 6f 5ixty days from the date ofreceipt of such order to the Regishar General, whose decision shall be fual. 16. where any regishation is suspended or cancelled under this Act, no No compdnsation persont shhaills beA enctitlerd to ary comFensation or refund of any fees paid or reftrnd of fees under ['JHffiliff", registratlon. 17. (1) A Money-Lendei whose regiskation has been suspended or Motrey-Lender cancelled in accordance with the provisions ofthis Act or any corresponding debarred from law in force in any other State shall, during the period of zuch suspensiol o, carryirg on business c"ncellation, as the case may be, disq'alifigd from holding any registration :lt^t-_s^:L:Y:^T,:, in'the State of Gujarar .'i"tu forthwith cesse to ""., ; ffi;;;; L:Ll.Yu" "t EoEey-leading iE trE State of GUJifrt. 'a=,ry.!M w7 ,; l 12 ?Ve G47rat tly'oneytrqndert //cl 20// [2011 : Gui. 14 (2) No Money-Lender shall lend any money to a member of the Schedr:.led Tribes residing in Scheduled Areas of the State as referred to in clause (1) of article 244 of the Constitution of lndia, without previous t[Gram sanction of the Sabha] of that village. CHAPTER IV SEARCHAND SEIZI]RES Registrar General 18. The Registar General, Registar, Assistant Registrar and any and other ot0cers to officer authorized under section 19 shall have and eiercise the same powers . have powers of civil for the purpose of making inquiries under this Act as are vested in Courts courts for certaln under the Code of Civil Procedure, 1908 in respect ofthe following matters, v or 1e08. purposes. namely:- (a) enforcing the attendance of aay person as a wihess and examining him on aa oath; (b) compelling the production of documents and material objects; (c) issuing commissiohs for the examination of witnesses; and (d) proof of facts by afidavits. Powers ofcertaln 19. (l) For the pulpose of veriication whether the busi-ness of money- omcers to require lending is canied on in accordance with the provisions of this Act or not, ttre production of record Regisrar General, Regisrar or any other officer authorized by ttre Registar on documetrts, search and seizure, General in this behalf may requirc any Money-Lender or any person in etc. respect ofwhom the Regisrar General, Registrar, or the officer so authorized has reason to believe that he is carryiig on the business of moneyJending in the State, to produce any record or document in his possession which in his opinion is relevant for the purpose and thereupon zuch Money-Lender or person shall produce zuch record or document. . (2) The Regishar General, Regisrar or aay officer authorized unier sub-section (l) may enter and search without warrant any prcmises where he has reason to believe that an offence rmder this Act has been or is being or is about to be committed and may seize any record or docurnent found therein or from any person therein which he has reason to believe may fumish evidence of the commission of an offence punishable under this Act aad he rnay, so far as may be necessary for the purpose of such search or seizure, detain aay person whom he has reason to believg 1s havg s6mmitted ar1 offence punishable under this Act. (3) Save as otherwise provided ia this sectioq every search or seizue made under this section shall be carried out in accordance with the provisions of the Code of Criminal kocedure, 1973 relating to searches or seizues 2 of ln4. made under that Code. L Th€se words sere substioted for thr eror& 'vi-Uage pdlchsyd by Guj. 2 of 2018. s.2 '1. ,,. r, 2011 : Gui. t4l The Gujwat Money-Lenders Act,2011 13 2t. (\) \1, upon t\e inspec\on of records and, docurnents made under D'sposa\ oi section 19, the inspecturg officer is satisied that the Money-Lender is in property p\edged possession of property pledged to him by a debtor as security for the loan :: nortgace9 with advanced by the Money-Lender without a valid registratioq the inspecting 'J:H,1-il'""0t;r,r*. officer shall require the Money-Lender to deliver forthwith the possession ;;;i,r""d;;s of such property to him without v{lid ., registration. (2) Upon the property being delivered to hnr, the inspecting officer, if he is not the Regisfar, shall entust it to the Registar and the Registrar (when he is also the inspecting officer) shall keep it in his custody for being disposed of as hereinafter provided. (3) On delivery of ttre property rmder sub-section (l) or sub-section (2), the Registrar shall, after due verification and identity thereof, rehrn it to the debtor who has pledged it or, where the debtor is dead, to his legal het (4) If the debtor or his legal heir cannor be traced, the Registrar shall, within ninety days from the date of taking possession of the property, publish notice in the prescribed manner inviting claims thereto. If a claim is received, whether in answer to the notice or otherwise, he shall adjudicate upon and decide such claim. If the Regisfar is satisfred rhat atry claim is valid, he shall deliver tle possession of the propfity to the person claiming it on his grving a receipt thereof; and such delivery of the property to the person claiming it shall discharge the Regiskar of his liability in respect of such property against any other,person. If the claim is refirsed, the property shall stand forfeited to the Statb Govemment. (5) Where the possession of the property pledged by a debtor can not for any reason (i:rcluding identity thereof) be delivered to him, then the Money- Lender to whom it was pledged shall be required to pay to the deblor or if he is dead, to his legal heir, the value of such property if such debtor or, as the case may be, the heir claims the property. If the Money-Lender fails to pay the value, it may be recoverable from him as an arrears ofland revenue and on recovery of the value, it shatl be delivered to the debtor by whom such property was pledged or, ds the case may be, to the legal heir and ifthe debtor or his legal heir can not be traced, the provisions of sub-section (4) apply. (6) If there is any difference of opinion between the Money-Lender aud the debtor, or as the case may be, his legal heir, on the question ofvalue of the property or its identity, the question shall be referred to the Registrar General for decision and his decision shall be final. (7) The value of the property may be determined with the assist^nce of the services ofan expert appointed by the Registar General in that behalf. The expert may be paid such honoraria as the Registrar General may, by an order in writing from time to time in relation to any area or areas, determine . ll l4 The Gujarat Money-Lenders Act, 2011 [20u e.t: CHAPTER V A CC O T]N TS AND S TA TDMDN TS Duty of Money- 21. (1) Every Money-Lender shall keep and mankn proper accolnb Lender to keep and a cash book, ledger, register of securities, register of debtors and such accounts and other books of accounts in such form and in such manner as may be furnish statements. prescribed. The cash book, the ledger and the register of securities shall contain an up-to-date and true accounts ofall Eansactions, particulars ofa pawrq pledge of secwity and where it is kept. (2) Every Money-Lender shall,- (a) deliver or cause to be delivered to the debtor on the same day on which a loan is advanced- (i) a statement in the prescribed form containing an up- to-date and tue account of ttre ransaction with the debtor, the amount (both in words and figuies) and the date of the loan, the alate of its maturity, the nature of security, if any, for the loan, the rate of interest charged and the nemes and fu[ ad&esses of the debtor and the Money-Lender aad such other particulars as may be prescribed; and if the loan advanced is in kin4 the statement shall show, in place of the amount of the loan and the rate of interest, the correct value ofthe thing or commodity on the date on which it is advanced and the quantity of the thi-ng or commodity in excess of the loan recoverable in /iea,of interest; (ii) a pass book in the prOscribed form conaining an up to date and true account of all tansactions relating to the loan; (b) submit to the Registrar such retums sf 1[s [sans advanced by him, in such form and at such time, as may be prescribed; (c) keep and maintain with himself a copy of the statement referred to in sub-clause (i) of clause (a); (d) upon repayment of a loan in firll, mark indelible entry ir every paper signed by the debtor with words indicating payment or cancellatibn, and discharge every mortgage, restore every pledge, retum every note and cancel or reassign every assiepment given by the debtor as a security for the loan. (3) Atl the particulars requted to be entered in the statement and the pass book referred to in clause (a) ofsub-section (2) shall be entered therein in clear, distinct and legible terms in local language, or, if so requted by debtor then in Hindi or English. (4) No Money-Lender shall receive any payment from a debtor on account of any loan without giving him a plain and complete receipt for such payment a.nd without obtaining the signature or thumb impression of the debtor or his agent on the copy of such receipt to be kept with the Money-Lender where the payment is made in person. 2011 : Guj. 14 I The Gujoat'Monzy-Lenders Act, 20 I I 15 (5) No Money-Lender shall accept from a debtor any article as a pawn, pledge or security for a loan without giving him a plain receipt foi such arricle, signed by the Money-Lender and showing therein the description and the estimated value of the article, the amount ofloan advancea against it and such other particulars as may be prescribed. (6) A Money-Lender shall keep and maintain articles received as a pawn, pledge or security in safe custody and produce the same to the authority referred to in sub-secpion (l) of section 19 on demand. (7) Where any dispute arises as to the corectness of the market value of the commodity advanced as a loar:, the matter shall be referred to the Registrar having jurisdiction in the area in which such loan is, or is to be, advanced and the decision of the Registrar shall be final. (8) A Money-Lender who has not maintained the record of any tansaction relating to a loan advanced by him in the books of accounts as required under this Act shall be deemed to have advanced such loan in conhavention of the provisions of this Act. (9) A Money-Lender sh4ll keep and maintain relevant books of accounts as referred to in this s6ction for five years except in the cases where the Registrar or Court require5 s1 has ysquired such books of accounts or stratements or pass books for any longer period" as the case may be. 22. (l) Evxy Money-Lender shall deliver or cause tri be delivered Detivery of every year to each ofhis debtors within t[forty-fivo days] after the expiry of staremetrt of the year, a legible statement in ttre prescribed form ofsucl debtor's accor'rnts YearlY accounts and of any amount that mly be oustanding ag^inst such debtor.The ;:L:[uri"Jr:j:, statrement .5u1 goatqin the following particulars, namely:_ Lender. (i) the priacipal amoun! the interest and the expenses due to the Money-Lender at,th.e beginning of the year; (ii) the lotal amount of lo^ns advanced during the year; (iii) the total amount of repayment received during the year; (iv) the principal amount and interest due at the end of the year; and (v) particulars of location of articie as a paw!, pledge or security where it is kept. (2) The statement to be delivered under sub-section Q) shall be signed by the Money-Lender or his agent, and shall be in local ianguage, or if so required by debtor, then in Hindi or F.nglish. (3) In respect of any partitular loan, whether advanced before or after the appointed dan the Money-Lendq 5hall, on a demand in writing being made by the debtor at any time during the period when the loan or any part thereof is outstanding, zupply to the debtor, or if the debtor.so ."qr,.io., to . any person specified in that behalf in the demand, (a)a statement written in the language referred to in sub-.section (2), siged by the Money-I*nds 61 his agen\ and crntairring the relevant particulars specified in sub-section (l); (b)" copy of any document relating to a loan made by him or of any security thereof. Dxp)aination- For the ptpow of this srcdoa ,fuearn n relabbd a azy Money-iender t(e ,6nancia( year. I These words sqE suhihlod for fte qods 'tiirty days" by cuj. l1 of20l5. s2. 16 The Gujarat Money-Lenders Act, 20 11 [2011 : Guj. 14 Audit of 23.I[(l) The aciounts of every Money-Lender shall be audited accounts of atleast once in every year by such ofrcer as may be specified by the State Money-Lender. Govemment by notification in Official Gazette, in resped of those money- lenders who have made transactions upto rupees fifty lacs and in other cases by a person who is a Chartered Accountant within the meaning ofthe Chartered Accountants Act, 1949 ot u fuio of Chartered Accountants; and 38 of 1949. the audit report shall be submitted to the Registar within such period as may be prescribed.l (2) If the audit report under sub-section (l) discloses any irregularity or any contavention or non-compliance of the provisiors of this Act or the n:les made thereunder, or of any of the conditions of the registration, the Registrar to whom such audit report is submitted" may without prejudice to any other action that may be taken under any other provision of this Act, by order in writing direct the Money-Lender to take such action as may be speciied in the order within the time;rentioned therein to remedy the irregulariry, or to take such steps necessary to comply with the provisions of this Act or the rules made thereunder or of the conditions ofthe registration. Debtor nol 24. A debtor to whom any statement or pass book has been fumished bound to admit under section 21 or 22 shall not be bound to acknowledge the correctness of correctness of the particulars mentioned therein and his failure to do so shall not by itself, particulan in statemetrts or pass be deemed to be an admisSion of the correctness of any of such particulars. book. CHAPTER Vt CERTAIN OTIIER DUTIES OF MONEY-LENDERS Money-Lender 25. Subject to the provisions of sections 176 to 179 of Chapter IX of not to dispose olT the Contract Acq 1872 or anything contained in any law for the time being rorrrz. pawned article,s in force, no Money-Lendgl 5hall dispose off any article taken fiom a debtor before certaiD period. as a pawn, pledge or security for the loan advanced to him, before a period of two years from the date stipulated for final repayment of the loan. St3y of suits by 26, (1) In every suit to which this Act applies filed by a Money-Lender Money-Lender after the appointed day or in every such suit pending before any court on the trot holding valid appointed day, the court shall consider'and decide the potlt whether such registration. Money-Lender held a valid registration or not at the time when the loan to which the suit relates was advanced and if the Court flnds that such Money- Lender did not hold valid registration at that time, it shali dismiss the suit forthwith. (2) Nothing contained in sub-section (l) shall affect the poweni of a Court of Wards, or atr omci.al assipee, a receiver, or an administrator or a Itr of 1909. Court under the provisions ofthe Presidency Toms Insolvency Act, 1909, or V of l9m. the Provincial Lrsolvency Ac! 1920 or apy.other law in force correspondiag to thal Act, or of a liquidator under the Companies Ac! 1956, to realise the I of 1956- property of a Money-Lender. I SuLsecioo (l) lras substird.d by Guj. tt of20l5, s 3 'a i,.rE*}!6r,- ,! !r 2011 : Guj. 14 l The Gtjoat Money-Lenders Act, 20ll 17 CHAPTER VII STIITS AND POWERS OF COTJRT 27. (1) In any suit ro which this Act applies- Procedure of Court (a) a Court shall, before deciding the.claim on merits. fi_a_m e i.r suits regarding and decide the issue whether the Money-Lender has complred wlth the loatrs. provisions of sections 21 and 22; (b) ifthe Court finds that the provisions of section 21 or section 22 have not been complied with by the Money-Lender, it may, if the plaintifs claim is estabiished, in wholdor in par! disallow the whoie or any portion ofthe interest found due, as may seem reasonable to it in the circumstances of the case and may disallow cost to the Money-Lender. Explanation- A Money-Lender who has given the receipt or firmished a. stt:melt of accounts or a pass book in the preScribed form and maoneq shall be deemed to have complied with the provisions of section 21 or section-22, as the case may be, in spite of anl.errors and omissions, if the Court finds that such enors and omissions are not material or not made fraudulently. (2) A Court tryrng a suif to which rhis Act applies shall, in a case in which it finds that the provisions of section 2l or iection 22 have nor been complied with by the Money-Lender, cause a copy of its judgment or order s6ntainiag such fuding duly authenticated by it and bearing the seal of the Court to be sent to the Registrar by whom the registration was issued to such Money-l.ender and on receipt of such copy of the j udg:rents or order, the Registar may, without holding any frrthe1 inquiry or giving an opportunity ofbeing heard to the Money-Lender, cancel his registration, or suspend it for zuch period as the Registar thinks fit. ^ 28. Notwitbstanding anything contained in any agreement or any law power ofcourr for the time beiag in f,orce, no court shall, in r".pi"t of *y loao whether to limit interest advanced before or after the appointed day, decree, on account of interest, 3 recoverable in sum greater ttran the principal of the loan due on the date of the decree. ctrtain c{ses. 29. The court may, at any time on the application of the judgment- power ofcourt to debtor, after notice to the decree-holder, direct that the amount ofanvlecree direct pelment of passed agains him, whether before or after the appointed day, in res-p ect of gec.re9l.:moutrt a loan, shall be paid in such number of installmens ana zuulect such by iDstallments. conditions, and payable on such dates, as having regard to the circumstances of the judgp.ent-debtor and t[e amount of the decree, it considers fit. 30. (1) Notwithstanding anything contained in any law for the time Reopening of being in force, the court shall, in any suit to which this Act applies, whstlhgy tratrssctiors. heard ex-prate or otherwise,- (a)reopen any transactiorq or any account already taken between the parties; (b)take an zrccount between the parties; (c)reduce the emount charged to the debtor in respect of any excessive interest; l8 ?Ze GaJbat t%on4t-Iezderc,4c4 20/1 [2011 : Gui. (d)if on taking accounts, it is found that the Money-Lender has i received more t}ran what is due to him, pass a decree in favow of the I debtor in respecf ofsuch unount:

Provided that in the exercise of these powers, the court shall not- (i)reopen any adjustnent or agreement purporting to elose previous dsalings and to create new obligations which have been entrusted into by the parties or any person through whom they claim at a date more thal six years from the date of the suit, (ii)do anlthing which affects any decree of a court Explanation,- For the purpose of this section, "excessive interest" means interest at a rate which contravenes any of the provisions of section 33. (2)(i)Notwitbstanding anything to the contary contained in any law, custom or contrac! where in any such suit, it is alleged by the debtor- (a)that the loan was advanced to him by the Money-Lender either before or after the appointed day, rot in fact on the security of any property held by him [u1th.1 th. loan was actually advanced to him on his tansfening by way of sale of such property to the Money-Lender or to a relative of the Monby-Lender, or O)that the transaction was in fact in the natue of a mortgage, the court shall declare the tansaction to be a sale or, as the case may be, a mortgage, if the court is satisfied that the circumstances conr:ected with the tansaction showed the transfer to be in the natue of a sale or a mortgage and thereupon the court shall proceed accordingly. (ii)In any zuch suit" if such relative has not been impeded as a party, the court shall declare such relative to be a party to such suit. Frpbnalion - For the purpose of this sub-section, the expression "relative" shall mean any ascendaat to the second degree and his descendant to the third degree and spouse ofany such ascendant or descendant. for Inquiry 31. (l) Ary debtor may make an application in prescribed form at any olo,c 1""?uoo time to the Court, whether the loan has or has not become payable, for and declaring" ;;;;, taking accounts and for declaring the amount due to the Money-Lender. ;h" due. (2) On receipt of such application" the Court shall cause a notice of the application to be given to the Money-Lender. ::==E:..fr:=+-.--,,. 2011 : Gqi. 14l The Gujarut Money-Le.nders Act, 2011 i9 ^_, :r\ ,?. Q) On tne date flxed tor {rc \e,anng of lne ap$rca\on ar on sus\ date to ,wKch the heanng may be adlorxned ftom tune to tuoe, the Court shall make an inquiry and shal1, after taking an accormt of the tansactions between the parties, pass al order declaring the amount, if any, still payable by the debtor to the Money-Lender in respect of the principal and interest, if any. In taking accounts under this sectioq the Court shait, so far as may be, have regard to the provisions of sections 2l to.30 and sections j3 to 37 . 32. (1) At any time, the debtor may tender to a Money-Lender any sum Deposit in ofmoney due from him in respect ofa loan by way of principal or interest Court of both. or money due f"S"tl:* (2) If a Money-rcnae. ien:ses ro accepr any sum so tendered, *. debtor may deposit the said sum in the Court which has jurisdiction to try the suit for the recovery of such sum, to the account of the Money-Lender. (3) The Court shall thereupon cause written notice of the deposit to be served on the Money-Lender, and the Money-Lender may, on presenting a petition stating the sum then due in respect of the loaq and hiswillingness to accept the said surn" receive and appropriate it first towards the interest and the residue, if any, towards the principal. (4) When the Money-Lender does not accept the sum, the Court shall appropriate the said sum fus towards the interest and the residue, if any, towards the principal. CHAPTER VIII RATES OF INTEREST, ASSIGMES, ETC. 33. (1) The State Govemment may, ftom time to time by notification in Limitation otr the Oficial Gazette, fix the maximum rates of interest for any local area or rate ofinter€st class of business of money-lehding in respect of secured and unsecured loans. (2) No agreement between a Money-Lender and a debtor for payment of interest at rates exceedi"g the maximum rates fixed by the State Government under sub-section (1) shall be valid and no Court shall in any suit to which this Act applies award interest exceed.ing the said rates. (3) No Moirey-Lender or a person advancing a loan shall make an oral or written demand or charge or receive from a debtor interest at a rate exeeeding the maximum rate,fixed by the State Govemment uder sub- section (1). (4) Any loan in respect of which the Money-Lender or any person has realized from the debtor an interest a1 mlss sxgsgding the maximum rates fixed by the State Govemment under sub-section (1), shall stand discharged and the amount ofexcessive interes! if any, 56 lgalized shall be refunded by the Money-Lender or any person, as the case may be, to the debtor. If the Money-Lender cir any person fails to pay such amount ofexcessive interest to the debtor, it shall be recoverable from him as an arrears of land revenue, and on recovery thereofl, it shall be paid to the debtor. z0 The Gujarat Money-Lenders Act, 2011 [2011 : Guj 14 ry j::r Probib)Don 34. (1) No Money-Lender sbd) rcceive from a debtor el illsnding i . a/clzrTre/ar deblorazl.rutzlytt'rla&oct'erzameca//e/atcoJqc/ra4acsar",?€ztat expenses on loans onthe \oars other than reasonab\e costs of investigating title to the property' by Money-Lender cost of stamp, registration of documents and'other usua\ out-of:pocket expenses in cases where an agreement between parties includes a stipuiation ofthat propeny is to be given as secwity orby way of.mortgage and where both parties have agreed to such costs and expenses and to reimbusement thereof, or where such costs,- charges or expenses are leviable under the provisions of the Transfer of Property Act, 1882, or any other law for the n or taez' time being in force. (2) Any sum received by a Money-Lender in contravention of sub- section (1) from a debtor or intending debtor on account of costs, charges or expenses refened to in that sub-section, sball be recoverable ftom the Money-Lender as debt from him to the debtor or, as the case may be, intending debtor, or shall be liable to be set off against the loan actually lent to the debtor or intending debtor. Notice and 35. (1) Where a loan advanced, whether before or after the appointed itrformation day, or any interest of such loan or the benefit of any agreement made or to be given on security taken in respect of such loan of interest is assigned to any assignee, assignment of ttre assignor, whether he is the Money-Lender by whom the money was lent loan. or any person to whom the debt has been previously assigned shall, before the assignment is made,- (a) give the assigpee a notice in writing that the loan, interest agreement or security is affected by the operation of this Act; (b) supply to the assignee all information necessary to enable him to comply with the provisions of this Act; and (c) gtve to the debtor a ngtice in writing of the assignment, supplying the name and addrcss ofthe assignee and send or carxie to be sent a copy thereof to the Registrar. (2) Any person acthg in contravention of the provisions of sub-section (1) shall be liable to indemnif any other person who is prejudiced by such contravention. Application 36. (1) Save as hereinafter provided where any debt due to a Money- ofAct as Lender in respect ofmoney lent by him, whether before or after the appointed resperts day or of interest on money so lent br,ofthe benefit ofany agreement made assignees. or security taken in respect of any such debt or interest, has been assiped' the assignee shall be deemed to be the Money-Lender and the provisions of this Act shall apply to such assigp.ee as if he were a Money-Lender. (2) Where for any reason, any such assiglme6 is invalid and the debtor has made any payment of money or tralsfer of property on account ofany loan which has been so assigned, the assignee shall in respect of such payment or transfer, be deemed to be the agent of the Money-Lender for all rhe purposes of this Acr 2011 : Guj. 14 l The Gujarat Money-Lenders Act,' 20ll 21 . 37. Notwithstanding anything contained in any agreement between the Manner of parties or any law for the time being in fo."", *h.n itut"rent is delivered calculating ald pass book is supplied to a debtor under section 2 " l or accounts are taken interesL under section 31 or a tender is made by a debtor to a oney-Lender in respect of a loan rmdei section 32 before the sixteenth day of a month, the interest due shall be calculated as payable for fifteen aayif the said month, and if the statement is delivered *i p*, book is sffiJor accounts are taken or tender is made on *y ,uLr"qr"ot aay, in* iot"r"st shal be calculated for the entire month, irrespective th; f;thril;;'*;; is delivered and pass book is supplied or su " c f h accounts are taken or such tender is made on aay such day. ^_ ,Erybnaian.- For the prrpose of this section, .month,, in relation to any roan, means a month of tlie year for which the accounts of the Money_ Lender relating to such loan are.ord.inarily maintainJio the books of account of the Money-Lender. CHAPTER D( OFFENCESAND PENALIIES . 38.. ,No Money-Lender shall accept ary promissory note, Entry of acknowledgmen! bond or otber writing tom tn"i.btii-*hi.h do., oo, wrong sum ln state the actual qmount ofthe ioan, or which states such amount wrongly or documents, etc. which contairu erasuies or over_writings not duly autneoticatea Uy tn" to be offence. deblor or accept from the debtor any documents ,ig""J tV debtor in w-hich blanks are left, or execute ooyin"t ."rt,f"Iti"g-Jd.b " r * o n . io *hi.h blanks are left for being filled in after execution. ^ .39..Notwithstanding anything contained in rhis Act or in any other law probibition f.or the time being in force, no Money-Lende. .naJr""or", tn" principal sf against the loan a c dv a an s c h ed . by him or the interest tho*, io puat or in whole recovery of except in "itn"i roan orinnrest except in cash. 40, Whoever moiests or abets the molestation of a debtor for the penalty tor recovery. of.a loa[ dUe by him to a Money-Lender shall, on convictioq be molestation. pyThed witb impisonaent, for a temt ifirn .uy "i6i b tuo y@ts ard w'lb .6ze ubtbl zay extead to (welg-frve cfrousatcl rups: Provided tlat in absence of the speciat and adequate reasous to the contrary to be mentioned in the judgments of the Court_ (i)for the firs ofence, suct i-Frisonment shalt not be less rhan six months and such fine shall nq1 !g les5 rhan ten thousand rupees; ri ,i!-ii.- (ii)for the second and subsequent offences, such imp -t r h is a o n nment shall lk :?. , not be less than one year and such fine shatl not be less twenty-five :,, thousand rupees ,-,ilr :'i3"1' 9:i,, 22 The Gujarat Money- Lqnders Act,201l [2011 : Guj. 14 Explanatian- For the purposes of this section, a person who, with intent to cause another person to abstain from doing any act which he has a right to do or to do any act which he has a right to abstain from doing- (a) obstructs or uses violence to or intimidates such olher person, or i. .: (b)persistently follows such other person from place to place or interferes with any properly owned or by him or deprives him of, or ]xed hinders him in the use thereof, or (c)loiters near a house or other place wherc such other person resides or works, or carries on bushess, or happens to be, or does aay act calculated to annoy or intimidate such other persog shall be deemed to molest such other person: Provided that a person who goes to sirch house or place in order merely to obtain or communicate information shall not be deemed to molest. Penalty for 41. Ifany Money-Lender or a person takes from a debtor at the time of saluml, balld, advancing aloan or deduct out ofthe principal ofsuch loan aty salami, batta, dham&da, etc- dharmada or other extraction of similar nature by whatever name called, he shall be punishable with fine which may extend to twetrty thousand rupees. Penalty for 42. Whoever- contraveotion ofsection (a) canies on the business of money-lending h any area without 5,19J3 or 38. registation in contravention of section 5; or (b) fails to produce any record or docugent in compliance with any requirement made rmder zub-section (l) of section 19 or knowingly produces any false record or document; or (c) obstructs any omcer making an entry, inquiry, search, seizure or entrance under sub-section (2) of section'19; or (d) denands, charges or receives from a debtor the interest at higher rate in contravention of sub-section (3) of section 33; or (e) accepts any. promissory note, acknowledgement bond or other writing or document or any instrument in contravention of section 38; or (f) tempem with debtors' record or transaction or makes a wrongful or false entry therein or tempers or mutilates or destroys paurn or property- shall on conviction, be punished qrift.im-Frisonment for a term which may extend to two years and with 6ne which may extend to twenty-five thousand rupees: F \ t I I 20It : Guj. t4 l The Gujoat Money-Lenders Act, 20Il 23 Provided that in absence of the special and.adequate reason to the contrary to be mentioned in the judgments of the Courtj (i) for the first offence, such imprisonmenf shall not be less than three months and such fine shall not be less tfr* nr. tlo**d rupees, (ii) for the second ana subsequent offences, such imprisonment shall not be less rhan six months a:rd su"n One snit not te less than ten thousand rupees. 43'whoever conhavenes the r i p * r ovisions of section 21 or section 22 penarty tor shall, on conviction, be punished * + *1 *ith fir;;;;."y rupees: extend to contravention ten thousand ofsection 2l or t*oo"'. i Provided that in absence of the special and adequate reason to *" contary to be mentioned in the judgments of the Courtj (i) for the first offencei 2I * * * *] such fine shall not be less than five thousand rupees; l, +-_ (ii) for the second and subsequent offences, 3[ * * * *] such fine shall not be less rhan ten thorrsand rupeg5. .i t14. Whoever fails to mmply with, or acts in contavention of, any of General the provisions of tbis Act .ho[, oo convicton" it no w..n" penar$ is provision .i prodded tor s,rc\ o$ence rn tKs Ac!t" plmr*on wrto ii"pr"r_i*i", ior pemrq. term which may extend to one year and with fine which may extend to te o n thousand rupees: conta P r r y o v t i o d e b d e m th e a n t t i i n on a e b d s e in nc t e h e b f ju th d e p s in p t e s c ia o l f a t n n d " a .o n u a r d i_ e - q " u - ate reason to the (i) for the fust offence, such imprisonment shall not be less thau one month and such fine shall not be t".Jtn* tr" tf";;;""r, (ii) for the second and subsequent offences, zuch imprisonment shall not be less than two months and sucl n"" ,i"ff i*s "* U" ihan five thor",r, d rupees. ' . to r an a . 5 o ' f ( f 1 ln ) c A e c _ o u u nd rt e r p r a h s is s in [ c s ! l: i f f e it r i s o s f a c ti o s n fi v J ic r ti h on " , a ; g ;; a ; i ; n " s y t _ a M Le on n e d y- e Le r nd h e as r P to o s w u e s r p e o n f d Court committed such contravention of the p.o"i.io* oiinl aii o, ,ut.. .ua. or cancel t le h n er d e in u g n , d e m r a a y s , w b o y u o ld rd m er a , k e e " h " im i. h u rf a it a 'to $ !9 ca n r i r o y ; ; i r l ; ; * ;; d ;r . of money_ c re e g rt i a s i t n ra c ti d o s t e r s i . n which it may impose oa him fsrsuch ofence, that su"nuooey_rJnaliGil from holding any regisbarion in th" sil il;.r,;;oiilcu ue asq,,arinea tusioe.s ro, such period, not being less than six months, * ,h; d; 6]y think fit. L T 2 h 0 e 1 s w , o s r .a d s O 'l . litI |Itrpnsonoert for atgrm hay €xetrd to oEeyea md" were deleted by cuj. t I of 3 2 . ' T T h h c e w wo o r r d d s s 's 's u u c c h h i i m m p p r r i i s s o o l m oe e m d s sh h s r l l l l o n o or t h be e l le e s r s . t t h t_ h s or i c * , E - o o n o tb @ ii* d # - q i e l r , e f fdieflertE,4, .,0rtd . s.4 f ( O O O (a) l . - .H i:_..H 24 The Gujarat Money-knders Act, 2011 [201] : Guj.'14 (2) Where a Court convicts a Money-Lender of an offence undor tfus I Aat, or md(es as order under sub-section Q) , it sha\\ cause the partrcu\ars of the conviction and the brder passed by it to be endorsed on all the authorized registrations held by the Money-Lender convicted or by any other person affected by the order and shall cause a copy of its judgnent and order duly authenticated by it to be sent to the Registrars by whom the registrations were granted, for the purpose of entering suph particulars in the registe$: Provided that where any Money-Lender is disqualified from holding any registration under this section, he may appeal against such order to the Court to which an appeal ordinarily lies from the decision of the Court passing the order of conviction; and the Court which passed the order or the Court of appeal may, if it thinks fit, pending the appeal, stay the operation ofthe order rmder this section. (3) Any registration required by a Court for endorsement in accordance with sub-section (2) shall be produced bj' the person by whom it is held ir such manner and within such time as may be directed by the Court and any person who, without reasonable cause, makes default in producing the registration so required shall be liable, on conviction, to a fine not exceeding five hundred rupees fpr each day for the period during which the default continues. (4) Powers conferred on a Court under this section may be exercised by any Court in appeal or in revision. Offences by 46. (1) If the person committing an offence under this Act is a Hindu corporations. Undivided Family, the person resporsible for the management of business of such family shall be deemed to be guilty of zuch contravention. (2) Where an offence under this Act or rules made thereunder has been committed by a company, every person, who, at the time the offence was committed was in charge of, and was responsible to the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of tle offence, a.nd shall be liable to be proceeded accordingly: ' against and punished hovided 1[31 asthing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was conmitted without his knowledge, or that he exercised all due diligence to prevent the commission of the offence. (3) Notwithstanding anydring contained in sub-section (2), where an offence under this .A's1 has been committed by a company and it is proved that the offence has been committed wjth the consent or connivance of, or is attributable to any neglect on the part of, any director, gt:nager or other officer, such director, manager or officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. ,|' I 2011 : Guj. 14 The Gujoat Money-Lenders Act, 20ll 25 Explanatian.- For the purpose ofthis section- (a) "company" means a body coryorate and ircludes any flrm or other association of individuals, and ..- -- " 1.' (b) "director,', in relation to a firm, means a partner in the firm. ,.;i,, 4T.Notwithstanding anythigg contained in the Code of Criminal Certaitr 2 ol1ea. Procedure, 1973, offences punishable- offences to be cognizable (a) under section 40, (b) under section 42 for contaveDiag the provision of section 5- ";.i;''. , ii:' shall be cognizable. 48.No corxt shall tdce cognizance of an1 offence other {nan offencss cogruso.e or certaitr reteNe to 'lf,\ secdon 41 excelt sn{n {ne preilous sonctron of tne Regrsrar. oiiences nit\ sanctron . . 49. (1) The Registar Generar or any other officer authorized bv hi* t" :::lt:: this behalt, mav accep! ftom the person who has committ;;;*"b; ;#H:"#".t""j suspected of having committed any offence under this Act, by way oi comnounding of such offence_ ^ ("1u lT of money equal to the maximum amount prescribed as fine under this Ac! if the offence is committed for the fust time; and (b) in other cases, twice the amount ofsuch fine prescribed under the respective sections: Provided that an offence with respect to which a proceeding is pending before the Court shall not be compoundable: Provided firther that the offences punishabls un6.r sections 42 and 43 of this Act shall not be compoundable. . ^ 50. Notwithstanding anything contained in any law for the time being Prohibition in force, no debtor who cultivates Iand personally and whose debts does not of arrest atrd exceed rupees fiffy thousand shgJl be arrested or'imprisoned in execution of imprisonment a decree for money passed in favour ofa Money_Lender, whether before or ofagricultural ater the appointed day. debtors ill execution of decrees of ,' .Eelanation-..- Fo1 the purpose of this section, the expression ..to motrey. cultivate personally" will have the meaning assigned to that expression in the relevant tenancy law. 26 The Gujarat Money-Lenders Act, 201I [201] : Guj. 14 CHAPTER X MISCELLANEOUS Officers and 51. Every officer of the Govemment when acting or purporting to act em ployees in pursuance ofthe provisions of this Act or the rules made thereunder shall to be public be deemed to be public servant within the meaning of section 2i of the ororrlro servants. lndian Penal Code. lndemnity. 52. No suit, prosecution or other legal proceedings shall lie against the Registrar General, Registrar, Assistant Registrar or any omcer or employee subordinate to him appointed under section 3 or any person acting on his authority, in respect of anythir:g which is in good faith done or purported to be done by him in pusuance of the provisions of this Act, or rules made thereunder or any insructions, for carryigg.out the purposes of this Act. Provisious 53. Nothing in this Act shall affect any of the provisions of any law of any other which may be in force in any part of the State relating to relief of agricultual Act in lorce indebtedness and no Court shall entertaiq or proceed under this Act with saved. any suit or proceeding relating to any loan in respect of which debt adjustment proceedings can be taken under the said Act, or as the case may be, the said law. Gratrt of 54. Whenever a copy of any dricument from the record of any copies of documents application, inquiry or appeal under this Act is requted by any party to such on palmetrt application, inquiry or appeal, it may be granted on payment of such fees as of fees. may be prcscribed by the State Government. Pow€r to mak€ 55. (1) The State Government may, by notifcation n the Ofuial rules. Gazette, make niJes generally for carrying out the purposes of this Act. (2) In particular and without prejudice to the generality ofthe foregoing provision, such nrles may provide for a1l or any of the following matters:- (a) the form of the register of Money-Lenders to be maintained by the Registrar under section 4; (b) the form of application for registration under sub-section (1) of section 6; the other particulars of such application, under sub-section (2); (c) the form of certificate of registration, the conditions of regisnation and fees for registation and the ma::ner of payment thereof under sub- section (1) of section 7; 4sir:E.a=.ffi,E!ffi+G 2011 : Guj. 14 l The Gujoat,Money-Lenders Act, 20 1 I 27 . .(d) the form of application for renewal of registration, the period for making such application; and the fee for renewil of registation; to fix amount ofpenalty and the manner ofpayment thereofunder sub-section (I) of section 9; (e) the fee for the issuance of a duplicare certificate of regisfration under section 11; ^- - (1 th.e manner of publishing a norice under sub_section (4) ofsection 20 for inviting claims to property pledged with a Money_Lender; (g) the form of cash book, register of securities, register of debtors, ledger and such other books ofaccounts; and the manner iiwhich they shall be mahtained under sub-section (1) ofsection 21; the form of statement of accounts, pass books and retums to be submitted to the Registar and the period for submission under gub-section (2) of section 2l; and the other particulars to be prescribed udder sub-section (5) ofthe section 2l; (h) the form of the statement under sub-section (l) of section 22; (i) the period for submission of audit report to the Registrar under sub_ section (1) of section 23; (j) the form of application to be made to ttre Court under sub-section (1) of section 31; ft) the payment of fees for copies of documents under section 54; (l) such other matters which are to be or may be, prescribed under this Act. (3) The rules made undei this section shall, subject to the condition of previous publicatioq be published n the Oficial Gazette. ' (4) All rules made under this section shalt be laid for not less rhan thirty days before the State Legislature a" soon is may be after they are made, and shall be subject to rescission by the State Legislature or to such modification as the State Legislature may make during the session in which they are so laid or the session immediately folowing. (5) Ar:y rescission or modiffcation made by the State Legislature shall be published in the Offcial Gazette and shall thereupon take effect. 28 The Gujarat Money-Lenders Act, 2011 [2011 : Guj. 14 Power of State 56. The State Govemment may, by general or special order io be Government published in the Oficial Gazette, exempt any Money-Lender or cl8s of to exempt. Money-Lenders from all or any of the provisions of this Act subject to such conditions and for such period as may be sirecified in such order. of Provisions 57. Nothing in this Act shall affect the operation of the Gujarat Rural Gui. 3s or Guj.35-ot 1976 ct 1976. re76' Debtors Relief A oot to affecl Repeal and 58.(1) The Bombay Money-Lenders Act 1946 is hereby repealed. )O(Xl ofl947. savings. (l) (2) Notwithstanding such repeal of the Act refer to in sub-section (hereinafter in this section refer to as the "said Act")- (a) any license issued under the said Act and validly in force immediately before the appointed day shall be deemed to be the registration issued under this Act, and (b) any appointnent, notiication, order, nrle, form, notice or register nade, issued or maintained under the said Act shall, so far il as it is not inconsistent with the provisions of this Act continue force and be deemed to have been made, issued or maintained under the provisions of this Ac! unless 4nd until it is superseded by a::y appoinment, notification, order, rule, form, notice or register made, issued or maintained under the provisions ofthis Act. (3) A-ny other thing done or action taken under the said Act, so far as it is not inconsistent ,with the provisions of this Act, shall be deemed to bave been done or taken under the corresponding provisions of this Act and shall continue in 1o."9 accordingly, unless and until superseded by any thing done or any action taken under this Act. Govemment Press, Vadodara-