The JAMMU AND KASHMIR MONEY LENDERS AND ACCREDITED LOAN PROVIDERS ACT, 2010

MONEY LENDERS AND
ACCREDITED LOAN PROVIDERS
ACT, 2010
(Act No. XXIII of 2010)
MONEY LENDERS & ACCREDITED LOAN PROVIDERS ACT, 2010 311
Section.
CHAPTER I
Preliminary
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II
Appointment and Powers of Registering Authority, Registration of Money
Lenders etc.
3. Appointment of registering authority.
4. Register of money lenders.
5. Money lender to obtain registration.
CHAPTER III
Maintenance of Books of Accounts and Submission of Returns
6. Duty of money lender to maintain accounts and furnish copies.
7. Submission of accounts, returns etc.
8. Power to require production of records or documents, and power of entry,
inspection and seizure.
9. Borrowers not bound to admit correctness of accounts.
CHAPTER IV
Dispute Resolution
10. Procedure in disputes regarding loan.
11. Power of Panchayat or Lok Adalat to deposit money due on loan in Panchayat
or Lok Adalat.
THE JAMMU AND KASHMIR MONEY LENDERS AND
ACCREDITED LOAN PROVIDERS ACT, 2010
(Act No. XXIII of 2010)
CONTENTS
312 MONEY LENDERS & ACCREDITED LOAN PROVIDERS  ACT, 2010
Section.
12. Suits and applications by un-registered money lenders barred.
CHAPTER V
Accredited Loan Providers
13. Registration of accredited loan providers.
14. Submissions of accounts, returns etc.
15. Settlement of disputes.
16. Cancellation of registration.
CHAPTER VI
Interest Rate Ceiling
17. Limitation on rates of interest charged by money lenders and accredited
loan providers.
18. Maximum amount of interest recoverable on loans and discharge of loans in
certain cases.
CHAPTER VII
Offences and Penalties
19. Entry of wrong sum in bond, etc. to be an offence.
20. Penalty for salami, batta, dharmada etc.
21. Penalty for molestation.
22. Penalty for carrying on business without registration.
23. Penalty for contravention of the provisions of the Act.
24. Composition of offences.
25. Cognizance of certain offences.
CHAPTER VIII
Miscellaneous
26. Every officer to be public servant.
27. Saving of laws relating to agriculturists’ indebtedness.
Section.
28. Power to make rules.
29. Power to exempt.
30. Annual report on the administration of the Act.
–––––––
314 MONEY LENDERS & ACCREDITED LOAN PROVIDERS  ACT, 2010
MONEY LENDERS & ACCREDITED LOAN PROVIDERS ACT, 2010 315
THE JAMMU AND KASHMIR MONEY LENDERS AND
ACCREDITED LOAN PROVIDERS ACT, 2010
(Act No. XXIII of 2010)
[Received the assent of Governor on 23rd October, 2010 and published
in the Government Gazette dated 25th October, 2010.]
An Act to regulate the transactions of money lending in the 1[State of
Jammu and Kashmir] and for matters connected therewith and incidental thereto.
Whereas, it is expedient to make provisions for protecting the interests
of borrowers, for regulating the transactions of money lending and to secure
more transparency in such transactions in the 1[State of Jammu and Kashmir].
Be it enacted by the Jammu and Kashmir State Legislature in the Sixtieth
Year of the Republic of India as follows : ––
CHAPTER I
Preliminary
1. Short title, extent and commencement. ––(1) This Act may be called
the Jammu and Kashmir Money Lenders and Accredited Loan Providers Act,
2010.
(2) It shall extend to the 2[whole of the Union territory of Jammu and
Kashmir].
(3) It shall come into force on such date as the Government may, by
notification in the 3[Government Gazette], appoint.
2. Definitions.–– In this Act, unless the context otherwise requires,––
(1) “Accredited Loan Provider” means a person who has a contractual
arrangement with an institutional creditor for receiving finance from
such institutional creditor for the purpose of on-lending to the
borrowers in his or its own name ;
1. Now Union territory of Jammu and Kashmir.
2. Substituted by S.O. 1229(E) dated 31.03.2020 for “while of the State of Jammu and
Kashmir”.
3. Now Official Gazette.
316 MONEY LENDERS & ACCREDITED LOAN PROVIDERS  ACT, 2010
(2) “bank” means––
(i) a banking company or a Co-operative Bank to which the Banking
Regulation Act, 1949 (Central Act 10 of 1949) applies ;
(ii) the State Bank of India constituted under the State Bank of
India Act, 1955 (Central Act 23 of 1955) ;
(iii) a Subsidiary Bank as defined in the State Bank of India
(Subsidiary Banks) Act, 1959 (Central Act 38 of 1959) ;
(iv) a corresponding new bank constituted under the Banking
Companies (Acquisition and Transfer of Undertakings) Act,
1970 (Central Act 5 of 1970) ;
(v) a corresponding new bank constituted under the Banking
Companies (Acquisition and Transfer of Undertakings) Act,
1980 (Central Act 40 of 1980) ; and
(vi) a Regional Rural Bank established under the Regional Rural
Banks Act, 1976 (Central Act 21 of 1976) ;
(3) “Borrower” means, a person to whom a loan is advanced and
includes a successor-in-interest or surety ;
(4) “co-operative society” means a society registered or deemed to
have been registered under the Jammu and Kashmir Co-operative
Societies Act, 1989 ;
1[(5) “Government” means the Government of the Union territory of
Jammu and Kashmir ;]
(6) “institutional creditor” means any bank which has advanced or
agreed to advance monies to accredited loan providers for the
purpose of on-lending ;
(7) “interest” includes the return to be made over and above what is
actually lent, whether the same is charged or sought to be recovered
specifically by way of interest or otherwise, but does not include
any sum lawfully charged by a money lender or accredited loan
1. Clause (5) substituted by S.O. 1229(E) dated 31.03.2020.
MONEY LENDERS & ACCREDITED LOAN PROVIDERS ACT, 2010 317
provider as costs, charges, expenses towards evaluation,
assessment and creation of the security ;
(8) “loan” means an advance whether money or kind at interest, with
or without security, and includes advance, discount, money paid
for or on account of or on behalf of or at the request of any person,
or the forbearance to require payment of money owing on any
account whatsoever, and every agreement (whatever its terms or
form may be) which is in substance or effect a loan of money, and
also an agreement to secure the repayment of any such loan, but
does not include––
(a) a deposit of money or other property in a Government Post
Office Bank or in a Government Savings Bank ;
(b) a loan advanced by the Government or by any local authority
authorised by the Government ;
(c) a deposit of money with or a loan advanced by a Co-operative
Society ;
(d) a loan advanced by the National Bank for Agriculture and Rural
Development established under the National Bank for Agriculture
and Rural Development Act, 1981 (Central Act 61 of 1981) ;
(e) a loan advanced by the Export-Import Bank of India
established under the Export-Import Bank of India Act, 1981
(Central Act 28 of 1981) ;
(f) a loan advanced by the Small Industries Development Bank
of India established under the Small Industries Development
Bank of India Act, 1989 (Central Act 30 of 1989) ;
(g) a loan advanced by the National Housing Bank, constituted
under the National Housing BankAct, 1987 (Central Act 53 of
1987) ;
(h) a loan advanced by State Financial Corporations established
under the State Financial Corporation Act, 1951 (Central Act
63 of 1951) ; and
(i) a loan advanced by any institution––
318 MONEY LENDERS & ACCREDITED LOAN PROVIDERS  ACT, 2010
(1) established by or under an Act of Parliament or the
State Legislature which grants any loan or advance
under the provisions of that Act ; or
(2) notified in this behalf by the Government, in
consultation with the Reserve Bank ;
(j) an advance made to a subscriber, or a depositor in a Provident
Fund from the amount standing to his credit in the fund in
accordance with the rules of the fund ;
(k) a loan to or by an insurance company as defined in the
Insurance Act, 1983 (Central Act IV of 1983) ;
(l) a loan or debenture in respect of which dealings are listed on
any Stock Exchange ;
(m) a loan or deposit to or by a non-banking financial company
registered with Reserve Bank under Chapter III of the Reserve
Bank of India Act, 1934 (Central Act 2 of 1934) ;
(n) a loan to, or by, or a deposit, with any charitable society or
association registered under the 1[Societies Registration Act,
1860 (21 of 1860)] ;
(o) an advance made on the basis of a negotiable instrument as
defined in the Negotiable Instruments Act, 1981 (Central Act
XXXVI of 1981) other than a promissory note ;
(p) a loan or advance made by a trader bona fide carrying on any
business, other than money lending, if such loan is advanced
in the regular course of such business.
Explanation :––For the purpose of clause (p), “trader” means a
person who deals in the goods or other property,
whether movable or immovable and includes a
wholesale or a retail merchant ;
(9) “Lok Adalat” means the Lok Adalat established under the provisions
of 2[the Legal Services Authority Act, 1987 (39 of 1987)] and includes
a Permanent Lok Adalat ;
1. Substituted by S.O. 1229(E) dated 31.03.2020 for “Jammu and Kashmir Societies Registra-
tion Act, Samvat 1998”.
2. Substituted ibid for “the Jammu and Kashmir Legal Services Authority Act, 1997”.
MONEY LENDERS & ACCREDITED LOAN PROVIDERS ACT, 2010 319
(10) “money lender” means a person whose main or subsidiary
occupation is the business of advancing and realizing loans in
the 1[State] ;
(11) “Panchayat” means the body constituted at the Panchayat level
under the Jammu and Kashmir Panchayati Raj Act, 1989 ;
(12) “prescribed” means prescribed by rules made under this Act ;
(13) “principal” means in relation to a loan, the advance actually made
to a borrower ;
(14) “register” means a register of money lenders of accredited loan
providers maintained under this Act ;
(15) “registering authority” means a person or an officer appointed by
the Government to perform the functions of a registering authority
under this Act ;
(16) “registration” means a money lender’s registration or accredited
loan provider’s registration granted under this Act ;
(17) “Reserve Bank” means the Reserve Bank of India constituted under
section 3 of the Reserve Bank of India Act, 1934 (Central Act 2 of
1934) ;
(18) “rules” means rules made under this Act.
CHAPTER II
Appointment and Powers of Registering Authority, Registration
of Money Lenders etc.
3. Appointment of registering authority.–– The Government may, by
notification in the 2[Official Gazette], appoint such persons, whether public
officers or not, as it thinks proper, to be registering authorities of the money
lenders and accredited loan providers for the purposes of this Act and may
define the areas within which each such authority shall exercise his powers
and perform his duties.
4. Register of money lenders. ––(1) Every registering authority shall
maintain for the area under its jurisdiction the registers of all money lenders
having valid registration in such form as may be prescribed.
1. Now Union territory of Jammu and Kashmir.
2. Substituted by S.O. 1229(E) dated 31.03.2020 for “Government Gazette”.
320 MONEY LENDERS & ACCREDITED LOAN PROVIDERS  ACT, 2010
(2) The registers maintained under sub-section (1) shall be published in
such manner and at such intervals as may be prescribed.
5. Money lender to obtain registration. ––(1) No money lender shall
commence or carry on the business of providing loan at any place to which
this Act applies without obtaining a registration under this Act.
(2) Every application for a money lender’s registration and for a
renewal of money lender’s license shall be in writing in the prescribed
manner and form and shall be made to the registering authority along with
the prescribed fee.
(3) Every registration granted by the registering authority shall be in
such form and subject to such conditions as may be prescribed.
(4) A registration shall be valid within the local area as specified in the
registration for a period of three years :
Provided that when an application for renewal of a registration has been
received by the registering authority within the prescribed period, the registration
shall, until the application is finally disposed of, be deemed to be valid.
(5) The registering authority may, at any time for sufficient cause suspend
or cancel a registration granted under sub-section (3) :
Provided that no order suspending or cancelling the registration shall be
passed except after giving the money lenders an opportunity of showing cause
against the proposed action.
Explanation :––For the purposes of sub-section (5), prosecution or conviction
of a money lender for violating any of the provisions of this
Act shall be sufficient cause for suspension or cancellation of
his registration.
CHAPTER III
Maintenance of books of Accounts and Submission of Returns
6. Duty of money lender to maintain accounts and furnish copies. ––(1)
Every money lender shall keep and maintain a cash book, a ledger, register of
securities and such other books of accounts in such form and in such manner
as may be prescribed.
MONEY LENDERS & ACCREDITED LOAN PROVIDERS ACT, 2010 321
(2) Every money lender shall,––
(a) deliver or cause to be delivered, to the borrower within seven days
from the date on which a loan is made, a statement in the prescribed
form showing in clear and distinct terms the amount and date of
the loan and of its maturity, the nature of the security, if any, for
the loan, the name and address of the borrower and of the money
lender and the rate of interest charged :
Provided that no such statement shall be required to be delivered
to a borrower if he is supplied by the money lender, with a passbook in
the prescribed form containing an up-to-date account of the transactions
with the borrower ;
(b) upon repayment of a loan in full, mark indelibly every paper signed
by the borrower with words indicating payment or cancellation,
and discharge every mortgage, restore every pledge, return every
document or note and cancel or re-assign every assignment given
by the borrower as security for the loan.
(3) No money lender shall receive any payment from a borrower on
account of any loan without giving him a duly signed receipt for the
payment.
(4) No money lender shall accept from a borrower any article as a pawn,
pledge or security for a loan without giving him a signed receipt for the same
with its description, estimated value, the amount of loan advanced against it
and such other particulars as may be prescribed.
(5) A money lender shall, on a demand in writing by the borrower,
and tender of the prescribed sum of expenses, supply a copy of any
document relating to a loan made by him or any security therefor, to the
borrower, or if the borrower so requires, to any person specified in that
behalf in the demand.
7. Submission of accounts, returns etc.–– Every money lender shall file
such statements of accounts and submit returns to the registering authority, at
such intervals and on or before such dates as may be prescribed.
8. Power to require production of records or documents, and power
of entry, inspection and seizure. ––(1) The registering authority or any
officer authorised by the Government in this behalf may, to verify whether
the business of the money lender is carried on in accordance with the
322 MONEY LENDERS & ACCREDITED LOAN PROVIDERS  ACT, 2010
provisions of this Act, enter the premises of the money lender or any person
who in his opinion is carrying on thebusiness of a money lender and call
upon him to produce any record or document relating to such business and
every such money lender or person shall allow such inspection and produce
such record or document.
(2) The registering authority may, for the purposes of the said sub-
section search the premises and seize any record and document as may be
necessary and the record or document seized shall be retained only for such
period as may be necessary for the purposes of examination, prosecution or
other legal action :
Provided that the provisions of sections 100 and 102 of the 1[Code of
Criminal Procedure, 1973 (2 of 1974)] shall, so far as may be, apply to such
search and seizure.
(3) The registering authority or the other officer referred to in sub- section
(1) shall also have power to summon and examine the money lender or any
person who in his opinion is in a position to furnish relevant information.
9. Borrowers not bound to admit correctness of accounts.–– A borrower
to whom a statement of accounts or a passbook has been furnished under this
Act shall not be bound to acknowledge or deny its correctness and his failure
to do so shall not, by itself, be deemed to be an admission of the correctness of
the accounts.
CHAPTER IV
Dispute Resolution
10. Procedure in disputes regarding loan. ––(1) In case of any dispute
relating to the transactions involving a loan of up to Rs. 50,000 (fifty thousand)
or equivalent value (excluding interest), the aggrieved person may file an
application in the prescribed form along with the prescribed fee, before the
Panchayat and on receipt of such application, the Panchayat shall cause a
notice or the application to be given to the other party.
(2) Where in any area there is no Panchayat and in every dispute relating
to the transactions involving a loan exceeding Rs. 50,000/- (fifty thousand) or
equivalent value (excluding interest), the aggrieved person may file an
1. Substituted by S.O. 1229(E) dated 31.03.2020 for “Code of Criminal Procedure, Samvat
1989”.
MONEY LENDERS & ACCREDITED LOAN PROVIDERS ACT, 2010 323
application in the prescribed form along with the prescribed fee before the Lok
Adalat and on receipt of such application, the Lok Adalat shall cause a notice
of the application to be given to the other party.
(3) The orders passed by the Panchayat or Lok Adalat, as the case may
be, after hearing the parties shall be binding on all the parties to the dispute.
(4) Notwithstanding anything contained in any law for the time being in
force, in any suit to which this Act applies, ––
(a) a Lok Adalat or Panchayat shall, before deciding the claim on merits,
frame and decide the issue whether the money lender has complied
with the provisions of section 6 ;
(b) if the Lok Adalat or Panchayat finds that the provisions of section
6 have not been complied with by the money lender, it may, if the
money lender’s claim is established in whole or in part, disallow
the whole or any portion of the interest found due as may seem
reasonable to it in the circumstances of the case and may disallow
costs.
Explanation :––A money lender who has given the receipt or furnished a
statement of accounts or a passbook in the prescribed form
and manner, shall be held to have complied with the provisions
of section 6, as the case may be, in spite of any errors and
omissions if the Lok Adalat or Panchayat finds that such errors
and omissions are not material or not fraudulent.
(5) Notwithstanding anything contained in the 1[Code of Civil Procedure,
1908 (5 of 1908)], the Panchayat or Lok Adalat, as the case may be, shall have
jurisdiction to hear and decide disputes relating to loan between a money
lender and borrower at the place where the borrower resides.
(6) The Panchayat or Lok Adalat, as the case may be, while hearing a
disputes under this Act shall have all the powers as are vested in a Civil Court
under the 1[Code of Civil Procedure, 1908 (5 of 1908)] while trying a suit in
respect of the following matters, namely : ––
(i) the summoning and enforcing the attendance of any defendant or
witness and examining the witnesses on oath ;
1. Substituted by S.O. 1229(E) dated 31.03.2020 for “Code of Civil Procedure, Samvat
1977”.
324 MONEY LENDERS & ACCREDITED LOAN PROVIDERS  ACT, 2010
(ii) the discovery and production of any document or other material
object producible as evidence ;
(iii) the reception of evidence on affidavits ;
(iv) issuing of any commission for the examination of any witness ; and
(v) any other matter which may be prescribed.
11. Power of Panchayat or Lok Adalat to deposit money due on loan in
Panchayat or Lok Adalat. ––(1) The Panchayat or Lok Adalat may, at any
time, on application of judgement-debtor, after notice to the decree holder,
direct that the amount of any decree passed against him, whether before or
after the date on which this Act comes into force, in respect of a loan, shall be
paid in such number of instalments and subject to such conditions, and payable
on such dates, as having regard to the circumstances of the judgement-debtor
and the amount of the decree, it considers fit.
(2) (a) Where a money lender refuses to accept the whole or any
portion of the money due in respect of his loans, the borrower
may deposit the said money into the Panchayat or Lok Adalat,
as the case may be, to record full or part satisfaction of the
loan.
(b) Where any such application is made, the Panchayat or Lok
Adalat, as the case may be, shall, after due inquiry pass orders
recording full or part satisfaction of the loan, as the case may
be.
12. Suits and applications by unregistered money lenders barred.––
Notwithstanding anything contained in any other enactment for the time being
in force––
(i) a suit by a money lender for the recovery of a loan ; or
(ii) an application by a money lender for the execution of a decree
relating to a loan ; or
(iii) an application for resolution of dispute through a Lok Adalat or
Panchayat,
shall be dismissed, unless at the time when the loan was advanced, the money
lender held an effective registration.
MONEY LENDERS & ACCREDITED LOAN PROVIDERS ACT, 2010 325
CHAPTER V
Accredited Loan Providers
13. Registration of accredited loan providers. ––(1) Any person or
institution intending to engage himself or itself as an accredited loan provider
shall apply to the registering authority constituted under section 3 of this Act
for registration to carry on the business as an accredited loan provider :
Provided that only such persons who have the necessary educational
qualification or knowledge of agriculture and rural economy, knowledge of
maintenance of books of accounts and such other conditions as may be specified
in the order issued by the Government in this behalf shall be eligible to become
accredited loan providers.
(2) No such application by an accredited loan provider shall be
entertained by the registering authority unless such application is
countersigned by an institutional creditor having credit link with the accredited
loan provider.
(3) No accredited loan provider shall commence or carry on the business
of providing loan without obtaining a registration under the provisions of
this Chapter.
(4) Every registration granted by the registering authority shall be in
such form as may be prescribed.
(5) Every registering authority shall maintain for the area under its
jurisdiction the registers of all accredited loan providers having valid
registration in such form as may be prescribed.
(6) The registers maintained under sub-section (5) shall be published in
such manner and at such periodic intervals as may be prescribed.
14. Submissions of accounts, returns etc. ––(1) Every accredited loan
provider shall maintain such books of accounts and file such statements of
accounts and returns as may be prescribed to the registering authority and a
copy of such statement of accounts and returns shall also be furnished to the
institutional creditor.
(2) The institutional creditor shall, on a requisition from the registering
authority, furnish the information concerning the loans provided by an
accredited loan provider within such time as may be specified in the requisition.
326 MONEY LENDERS & ACCREDITED LOAN PROVIDERS  ACT, 2010
15. Settlement of disputes.–– The provisions of section 10 shall mutatis
mutandis apply to any dispute between the accredited loan provider and the
borrower.
16. Cancellation of registration. ––(1) If the institutional creditor has
informed the registering authority about the termination of its relationship
with the accredited loan provider, the registering authority shall cancel the
registration of the accredited loan provider :
Provided that if within a period of thirty days from the cancellation of the
registration such accredited loan provider enters into an agreement with another
institutional creditor and his application is countersigned by the new
institutional creditor, the registering authority shall restore the registration of
such accredited loan provider.
(2) The registering authority may, at any time for sufficient cause, suspend
or cancel a registration granted under section 13 :
Provided that no order suspending or cancelling the registration shall be
passed except after giving the accredited loan provider an opportunity to show
cause against the proposed action.
Explanation :––For the purposes of sub-section (2), prosecution or conviction
of accredited loan provider for violation of any of the provisions
of this Act shall be sufficient cause for suspension or
cancellation of the registration.
CHAPTER VI
Interest Rate Ceiling
17. Limitation on rates of interest charged by money lenders and
accredited loan providers. ––(1) The Government may, from time to time, by
notification, specify the maximum rates of interest for any local area chargeable
by money lenders and accredited loan providers and separate rates of interests
may be specified in respect of secured and unsecured loans.
(2) If any money lender or accredited loan provider charges or receives
from a borrower interest at a rate exceeding the maximum rate fixed by the
Government under sub-section (1), he shall be liable for punishment under this
Act.
MONEY LENDERS & ACCREDITED LOAN PROVIDERS ACT, 2010 327
(3) The maximum rate of interest notified by the Government under sub-
section (1), shall be calculated by taking into account the interest rate trends,
cost of transactions, cost of the capital, the risk premium and the administrative
expenses associated with such loans.
(4) All money lenders and accredited loan providers shall display the
rates of interest charged by them, both on secured as well as unsecured loans,
in a conspicuous place in their premises.
18. Maximum amount of interest recoverable on loans and discharge of
loans in certain cases. ––(1) No money lender or accredited loan provider
shall recover towards the interest in respect of any loans advanced by him, an
amount in excess of the principal amount.
(2) Any loan in respect of which the money lender or accredited loan
provider has realized from the debtor an amount equal to or more than twice
the amount of the principal, shall stand discharged and the amount, if any, so
realized in excess of twice the amount of the loan shall be refunded by the
money lender or accredited loan provider, as the case may be, to the debtor.
CHAPTER VII
Offences and Penalties
19. Entry of wrong sum in bond, etc. to be an offence. ––(1) No money
lender or accredited loan provider shall take any promissory note,
acknowledgment, bond or other writing which does not state the actual amount
of the loan, or which states such amount wrongly or obtains any instrument in
which blanks are left to be filled after execution.
(2) Whoever contravenes the provisions of sub-section (1) shall, on
conviction, be punished with fine which may extend to twenty thousand rupees
or with imprisonment which may extend to one year or with both.
20. Penalty for salami, batta, dharmada etc.–– If any loan provider
or accredited loan provider or his agent takes from a borrower at the time
of advancing a loan or deduct out of the principal of such loan any salami,
batta, dharmada or other extraction of similar nature by whatever name
called, he shall be punishable with fine which may extend to twenty
thousand rupees.
21. Penalty for molestation. ––(1) Whoever molests, or abets the
molestation of, a borrower for the recovery of a debt due by him to a money
328 MONEY LENDERS & ACCREDITED LOAN PROVIDERS  ACT, 2010
lender or accredited loan provider or his assignee, as the case may be, shall, on
conviction, be punished with imprisonment which may extend to two years or
with fine which may extend to one lakh rupees or with both.
Explanation :––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 other
persons ; or
(b) persistently follows such other person from place to place
or interferes with any property owned or used by him or
deprives him of, or hinder him in, the use of any such
property ; or
(c) loiters at or near a house or other place where such other
person resides or works, or carries on business, or
happens to be ; or
(d) does any act calculated to annoy or intimidate such other
person or the member of his family ; or
(e) moves or acts in a manner which causes or is calculated
to cause alarm or danger to the person or property of
such other person,
shall be deemed to molest such other person :
Provided that a person who goes to the house or place
referred to in clause (c) in order merely to obtain or
communicate information shall not be deemed to molest.
(2) Notwithstanding anything contained in the Code of Criminal
Procedure, Samvat 1989, offence punishable under sub-section (1) shall be
cognizable.
22. Penalty for carrying on business without registration.––
Whoever carries on the business of providing loans without obtaining
registration or otherwise than in conformity with the terms and conditions
imposed by the registering authority shall be punished with imprisonment
MONEY LENDERS & ACCREDITED LOAN PROVIDERS ACT, 2010 329
for a term which may extend to one year and with fine which may extend to
fifty thousand rupees.
23. Penalty for contravention of the provisions of the Act.–– If any
person contravenes any other provision of this Act, he shall be punishable
with fine which may extend to ten thousand rupees.
24. Composition of offences. ––(1) The registering authority or any other
officer or authority authorised by the Government in this behalf, may accept from
the person who has committed or is reasonably suspected of having committed
any offence under this Act, by way of composition of such offence,––
(a) a sum of money equal to the maximum amount prescribed as fine
under this Act, if the offence is committed for the first time ; and
(b) in other cases, twice the amount of such 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.
(2) Notwithstanding anything contained in sub-section (1), offence
punishable under section 21 of this Act shall be cognizable and shall not be
compoundable.
25. Cognizance of certain offences.–– No court shall take cognizance
of any offence, except the offence under section 21 save on a complaint
made by registering authority or any other officer duly authorised in this
behalf by the Government.
CHAPTER VIII
Miscellaneous
26. Every officer to be public servant.–– Every officer of the Government
and every person acting under the provisions of this Act shall be deemed to be a
public servant within the meaning of section 21 of the 1[Indian Penal Code (45 of
1860)].
27. Saving of laws relating to agriculturists’ indebtedness.––Nothing in
this Act shall affect any of the provisions of any enactment relating to relief of
agriculturists’ indebtedness.
1. Substituted by S.O. 1229(E) dated 31.03.2020 for “State Ranbir Penal Code”.
330 MONEY LENDERS & ACCREDITED LOAN PROVIDERS  ACT, 2010
28. Power to make rules. ––(1) The Government may, by notification in
the 1[Official Gazette], make rules for carrying out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing
power, such rules may provide for all or any of the following matters, namely:––
(a) the form of the register under section 4 ;
(b) the form of the application for registration, the further particulars
to be included therein and the manner of payment of registration
fee under section 5 ;
(c) the form of cashbook, ledger and other books and the manner in
which they shall be maintained under section 6 and the other
particulars to be prescribed under that section ;
(d) the form of statement of accounts and passbooks to be furnished
or delivered and the date before which it is to be furnished or
delivered under section 6 ;
(e) the procedure to be followed by the officers while compounding
offences under this Act ;
(f) any other matter which has to be or may be prescribed under this
Act or any matter for which there is no provision or insufficient
provision in this Act and for which provision is, in the opinion of
the Government, necessary for giving effect to the provisions of
this Act.
(3) Every rule made under this Act, shall be laid, as soon as may be after
it is made before 2[Legislative Assembly of the Union territory of Jammu and
Kashmir] while it is in session for total period of thirty days which may be
comprised in one session or in two successive sessions, and if, before the
expiry of the session in which it is so laid or the session immediately following,
3[Legislative Assembly] agree in making any modification in the rule or
3[Legislative Assembly] agree that the rule should not be made, the rule shall
thereafter have effect only in such modified form or be of no effect, as the case
may be, so however, that any such modification or annulment shall be without
prejudice to the validity of anything previously done under that rule.
1. Substituted by S.O. 1229(E) dated 31.03.2020 for “Government Gazette”.
2. Substituted ibid for “each House of the State Legislature”.
3. Substituted ibid for “both Houses”.
MONEY LENDERS & ACCREDITED LOAN PROVIDERS ACT, 2010 331
29. Power to exempt.–– The Government may, after consultation with the
Reserve Bank, by notification in the 1[Official Gazette], exempt such money
lenders or accredited loan providers, from all or any of the provisions of this
Act, subject to such conditions as it may deem fit and for such period as may
be specified.
30.  Annual report on the administration of the Act.–– The
Government shall prepare an annual report on the administration of this
Act and the same shall be laid 2[before the Legislative Assembly of the Union
territory of Jammu and Kashmir] annually.
–––––––
1. Substituted by S.O. 1229(E) dated 31.03.2020 for “Government Gazette”.
2. Substituted ibid for “on the table of both Houses of the State Legislature”.
332 MONEY LENDERS & ACCREDITED LOAN PROVIDERS  ACT, 2010

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