The Gujarat Money Lenders Act 2011

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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]
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GOVERNMENT OF GUJARAT
LEGISLATTVE AND PARLIAMENTARY
AFFAIRS DEPARTMENT
THE GUJARAT MONEY-LENDERS ACT, 2011.
(GUJARAT ACT NO.14 OF 2011)
[As modified upto 31't August,2022]
H!2039
120221
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2011 : Guj, 14 I
PREAMBLE
Sections.
The Gujarut Money-Lenders Act, 2011
TIM GUJARAT MPNEY-LENDERS ACT, 2011.
CONTENTS
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PAGENO.
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CHAPTERI
PRELIMINARY
Short title, extent alld commencement.
Definitions.
CHAPTER tI
AUTHORITTES
Authorities for implementation of the AcL
CIIAPTERIII
PROVISIONS RELATING TO REGISTRATION
Register of Money-Lenders.
No business of money-lending except regiskation.
Application for Registation.
Grant of Regishation.
Term of Registration,
Renewal of Registration.
Refrrsal for grant or renewal of registration.
Grant of driplicate certificate of Regish-ation.
Power of Registrar to inspect.
Suspension of Registration.
Application to Registar General lor cancellation ofRegistration.
Power ofRegistrar to cancel regisEation in certain circumstances.
No compensation or refirnd of fees for suspension or cancellation of registration.
Money-Lender debarred from carrying on business during suspension or cancellation of
registration.
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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
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20. Disposal of property pledged or mortgaged with Money-Lender carrying on business of
moneyJending without valid regishation.
CHAPTERV
ACCOI.INTS AI{D STATEMENTS
21. Duty of Money-Lender to keep accounts and fumish statements.
22. Delivery of statemnet ofyearly accounts and docunnets to debtors by Money-Lender.
23. Audit of accounts of Money-Lender.
24. Debtor not bound to admit correctness ofparticulars iD statements or pass book.
CHAPTERVI
CERTAIN OTHE,R DUTIES OF MONEY.LENDERS
25. Money-Lender not to dispose off pawned articles before certain period.
26. Stay of suits by Money-Lender not holding valid regishation.
CHAPTERVII
SI,IITSAND POWERS OF COIIRT
27. Procedure of Court in suits regarding loans.
28. Power of Cowt to limit interest recoverable il certain cases.
29. Power of Court to direct payement of decretal amount by instalLnents.
30. Reopening of hansactions.
31 . Inquiry for taking accounts and declaring the amount due
Deposit in Court of money due to Money-Lender.
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2011 : Guj. 141
PREAMBLE
Sections.
The Gujarat Money-Lendets Act, 20 1 I
PAGENO.
CTIAPTERVIII
RATES OF INTEREST, ASSIGNESS, ETC.
33. Limitation on rate of interest.
34. Prohibition of charge for expenses 6a !6qns by Money-Lender.
35. Notice and information to be given on'assignment of loan.
36. Application ofAct as respects assigness.
37. Manner of calculating interest.
CIIAPTER IX
OFFENCES A}[D PENAIIIES
38. Enty of wrong sum in documents, etc. to be offence.
39. Prohibition against recoverv of loan or interest except in cash.
40. Penalty for molestation
41. Penalty for salam| batta. dharmada, etc.
42. Penalty for contravention of section 5119,33 or 38.
43. Penalty for contravention of section 21 or section 22
44. General provision for penl ty.
45. Power of Court to suspend or catrcel registration in certain cases.
46. Offences by corporations.
47. Certain offences to be cognizble.
48. Cognizance of certain offences with sanction of Registrar.
49. Compounding of certain offences
50. hohibition ola[est and imprisonment of agricultural debtors in execution of decrees of
money.
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PREAMBLE
Secfions.
. CIIAPTERX
MISCELLANEOUS
51. Officers and employees to be public servants.
52. Indemnity.
53. Provisiors of any other Act ia force saved.
54. Grant of copies of.docrrments on payment of fees.
55. Power to make nrles.
56. Power of State Government to exempt.
57. hovisions ofGuj.35 of 1976 not to atrect
58. Repeal and savings.
PAGENO.'
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201I : Guj. 14 l The Gujarat Money-knders Act, 2011
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:-
CHAPTER I
PRELIMINARY
1. ( l)This Act may be called the Gujarat Money-Lenden Act, 2011 .
(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, -
(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
Regulations Act, 1949 applies;
(ii)the State Bank of lndia constitr.rted under the State Bank of
IndiaAct, 1955;
(iii)a Subsidiary Bairk as defined in the State Bank of lndia
(Subsidiary Banls) Act 1959;
(iv)a conesponding new bank constituted under the Banking
Companies (Acquisition and Transfer of Undertakings) Act,l970, or the
Banking Compo"ies (Acquisition and Transfer of Undertakings) Act, 1980;
and
. (v)a regtonal rural bank established under section 3 ofthe Regional
Rural Ba-nks Act, 1976;
Short title,
ertent and
commencement
Defrnitions,
l0 of IN9.
23 of 1955.
38 ofl9s9.
5 of 190.
't0 of 19t0.
21 of 1Y76.
. This Act was assented by the Governo! 0E
t . For Sloremem ofobje€{s ed Re6ons, see
201I, Page No 2l-30 to 2l'34
&e 6s April.20lL
Gujaa Govemment Goete El(tssordrllry, Pafi V draled l8uMEctt'
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2 Ihe Giarat Money-Leiders Act, 2011
_ (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 ;
(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,
1956;
. (6) "co-operative society" means a society registered or deemed to coj.lohave 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;
[2011 : Guj. 14
r of1956.
)fiI of 1860
(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-
(7) "debtor" means a person to whom a loan is advanced and includes
a successor-in-interest or surety;
. (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
to a public, religious or charitable objeit;
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(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;
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2011 : Gui. 14 I The Gujoat Money-Lenders Act, 2011
(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;
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4 The Gujarat Money-Lenders Act, 20I I
( 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:
[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;
(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;
(18) *Regisfar General" me,ns'the Regishar General of Money-
Lenders appointed under section 3; and includes the Additional Registrar
General of Money-Lenders;
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(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;
(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
advanced by a Money-Lender; i
(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-
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2011 : Guj. 141 The G4jod Money-Lenders Act, 2011
CEAPTER tr
AUTEORITTE,S
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(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.
.^*te'.
3. (1) For carrying out the Purposes of this Ac! the State Govemment Authorities ror
sball appoint- 
imrlemetrtation of
(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
the provisions ofthis Act and i6e ru(es nrade thereunde r shall vest in the
Registrar General
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4. Every Registrar shall maintain a.register of Money-Lenders in the
ples-cribed form, to whom registrationd have been granted for carrying on
the business of money-lending in the area within his jurisdiction.
No business oI 5. () No Money-Lender shall commence or cary on the business ofmoneyJerdiug 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-
6.(1) A person who intends to commence or to carry on the business
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.
The Gujarat Moneylenders Act, 2011
CHAPTER III
PZOADIO1YJZDZ4"WA???Zacn4.?Tox
(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,
[20
Reg[ster
of Money-
Lenders.
Applicatiotr lor
Reglstration.
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2011 : Guj. 14 l The Gujarat Money-Lenders Act, 201 I
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
shall after making such inqulry as may be necessary and on payment of
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
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Grant of
Registration.
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.
(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 Regisnaris 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 undersub-section (1) for such other area without making any in;uiry referred toin sub-section (l) unless there are reasonable grounL for making an inquiry.
(5) The application fees paid under sub_section (l) or (a) shall notbe refirnded, notwithstanding the fact that the registation is refused or the
application is withdrawn.
8. Subject to the provisions of this Ac!_
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(a) a registration granted under section 7 sha be varid for a period offive years Aom the date on which it is granted;
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(b) a regisration validly in force onthe appointed day shall be valid tillthe next 3 I s day of March of the year in whi.h thi, e.t .L.". into force.
.9. (1) On the expry of the period of validity of a registration undersection 8, the registation shall be liable to be renewed on an'application forrenewal 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 satisfiedthat the applicant could not make an ap plicadon for renewal ofa registationwithin tfig plesqribed period for reasons beyond his control, he may, forreasons to be recorded in writing, condone such delay; and may renew theregistration 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 anapplication for renewal ofa registration as if it were an application for grant
ofa regisration.
f
Term of
Registration.
Retrewal of
Registration.
2011 : Guj. 14 I
XLv of 1860
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 or renewal ofregistration shall not be refi:sed except Refusal for
on any of the following grounds:- :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
or dishonesty in the conduct ofor if connection witt, the
business of moneyJending, or
(ii) been found guilty ofan offence under Chapter XVII
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.
try
(2)The Regist'ar shall, before refi:sing to grant or renew registration
.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 [2011 : Guj.14
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.
1l. When a certificate of registration is lost, mutilated, destroyed, torn
or otherwise defaced, a duplicate certiflcate of registration may be granted
to the Money-Lender on an application rnade to the Registrar along with
such fees as may be prescribed by the Stite Govemment.
Granl of
duplicate
certificate of
Registration.
Power of
Registrar to
inspect.
Suspension of
Registra tion.
12. The Regisrar shall, by an order, provide for the periodical inspection
by such officers appointed under this Act for the purposes of sections I 8 and
19.
13. (l) Where a complaint ha-s been filed ia a court against a Money-
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
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.
11
f5. (1) Notwithstanding .lu:ytling contained in secrion 14, if the
Regishar has rcason to believe with respect to any Money-Lender holding
registration for ttre area within his jurisdiction that such Money_Lendei
has been guilty of any act or conduct for which the Registar might under
section 10 have refused the grant or renewal ofthe registation aad which
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.
Power of
Registrar
to c{trcel
registratio n
in certai-n
circumstancqs.
(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
person shall be entitled to ary comFensation or refund of any fees paid or reftrnd of fees
under thisAcr ['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" "tEoEey-leading iE trE State of GUJifrt.
w7 'a=,ry.!M,; l
12
Registrar General
and other ot0cers to
have powers of civil
courts for certaln
purposes.
Powers ofcertaln
omcers to require
production of record
on documetrts,
search and seizure,
etc.
?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
sanction of the t[Gram Sabha] of that village.
CHAPTER IV
SEARCHAND SEIZI]RES
18. The Registar General, Registar, Assistant Registrar and any
officer authorized under section 19 shall have and eiercise the same powers .
for the purpose of making inquiries under this Act as are vested in Courts
under the Code of Civil Procedure, 1908 in respect ofthe following matters, v or 1e08.
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.
19. (l) For the pulpose of veriication whether the busi-ness of money-
lending is canied on in accordance with the provisions of this Act or not, ttre
Regisrar General, Regisrar or any other officer authorized by ttre Registar
General in this behalf may requirc any Money-Lender or any person in
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
made under that Code.
L Th€se words sere substioted for thr eror& 'vi-Uage pdlchsyd by Guj. 2 of 2018. s.2
2 of ln4.
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
without v{lidof such property to him ., 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 .
'1. ,,.
l4
Duty of Money-
Lender to keep
accounts and
furnish statements.
The Gujarat Money-Lenders Act, 2011
CHAPTER V
A CC O T]N TS AND S TA TDMDN TS
21. (1) Every Money-Lender shall keep and mankn proper accolnb
and a cash book, ledger, register of securities, register of debtors and such
other books of accounts in such form and in such manner as may be
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.
e.t:[20u ll
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
Audit of
accounts of
Money-Lender.
Debtor nol
bound to admit
correctness of
particulan in
statemetrts or pass
book.
Money-Lender
not to dispose olT
pawned article,s
before certaiD
period.
The Gujarat Money-Lenders Act, 20 11 [2011 : Guj. 14
23.I[(l) The aciounts of every Money-Lender shall be audited
atleast once in every year by such ofrcer as may be specified by the State
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.
24. A debtor to whom any statement or pass book has been fumished
under section 21 or 22 shall not be bound to acknowledge the correctness of
the particulars mentioned therein and his failure to do so shall not by itself,
be deemed to be an admisSion of the correctness of any of such particulars.
CHAPTER Vt
CERTAIN OTIIER DUTIES OF MONEY-LENDERS
25. Subject to the provisions of sections 176 to 179 of Chapter IX of
the Contract Acq 1872 or anything contained in any law for the time being rorrrz.
in force, no Money-Lendgl 5hall dispose off any article taken fiom a debtor
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
Money-Lender
trot holding valid
registration.
26, (1) In every suit to which this Act applies filed by a Money-Lender
after the appointed day or in every such suit pending before any court on the
appointed day, the court shall consider'and decide the potlt whether such
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
Court under the provisions ofthe Presidency Toms Insolvency Act, 1909, or
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
property of a Money-Lender.
Itr of 1909.
V of l9m.
'a
I SuLsecioo (l) lras substird.d by Guj. tt of20l5, s 3
i,.rE*}!6r,-
I of 1956-
!r
2011 : Guj. 14 l The Gtjoat Money-Lenders Act, 20ll
CHAPTER VII
STIITS AND POWERS OF COTJRT
27. (1) In any suit ro which this Act applies-
provisions of sections 21 and 22;
(a)reopen any transactiorq or any account already taken between
the parties;
(b)take an zrccount between the parties;
(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 wholdo

Excerpt shown. Open the full act in Lexace.

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