LexThe Maharashtra MoneyLending (Regulation) Act, 2014
Maharashtra · state statute
Open in Lexace · Ask the AI about this act2014 : Mah. VIII] 1
THE MAHARASHTRA MONEY-LENDING
(REGULATION) ACT, 2014
[Text as on 22nd November 2023]
—————
CONTENTS
PREAMBLE.
SECTIONS.
1. Short title, extent and commencement.
2. Definitions.
3. Appointment of Registrar General and other officers to assist him.
4. Money-lender not to carry on business of money-lending except for area under licence
and except in accordance with terms of licence.
5. Application for licence.
6. Grant of licence and entry in register.
7. Register of money lenders.
8. Refusal of issue of licence.
9. Revisionary powers of Registrar General.
10. Term of licence.
11. District Registrar’s power to cancel licence.
12. Levy of inspection fee.
13. Suits by moneylenders not holding licence.
14. Application for cancellation of licence.
15. Registrar General and his subordinates to have powers of Civil Court.
16. Power of authorized officer to require production of records or documents.
17. Disposal of property pledged with money lender carrying on business of money lending
without valid licence.
18. Return of immovable property acquired in course of money lending.
19. Court’s power to cancel or suspend licence.
20. No compensation for suspension or cancellation of licence.
21. Persons debarred from doing money lending during period of suspension or cancellation of
licence.
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22. Person whose licence is suspended or cancelled not to apply without giving particulars of
endorsement or of disqualification.
23. Promissory note, Bond, etc., to be factual.
24. Duty of money-lender to keep accounts and furnish copies.
25. Delivery of statements of accounts and copies thereof by money-lenders.
26. Fees for certain statements supplied to debtors and Assistant Registrar.
27. Debtor not bound to admit correctness of accounts.
28. Procedure of Court in suit regarding loans.
29. Power of Court to limit interest recoverable in certain cases.
30. Power of Court to direct payment of decretal amount by installment.
31. Limitation on rates of interest.
32. Prohibition of charge for expenses on loans by money-lenders.
33. Assignment of loans.
34. Application of Act as to assignees.
35. Re-opening of transactions.
36. Inquiry for taking accounts and declaring amount due.
37. Deposit in Court of money due to money-lenders.
38. Calculation of interest.
39. Penalty for doing money-lending without valid licence.
40. Penalty for making false statement.
41. Obtaining licence under fictitious name, carrying on money-lending at a place not
mentioned in licence, etc.
42. Penalty for wrong entry in promissory note, Bond, etc.
43. Penalty for contravention of section 24 or 25.
44. Penalty for charging rate of interest in contravention of section 31.
45. Penalty for molestation.
46. General provisions regarding penalties.
47. Offences by corporations, etc.
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48. Certain offences to be cognizable.
49. No arrest and imprisonment in execution of decree for money against agricultural debtors.
50. Every officer to be public servant.
51. Protection of action taken in good faith.
52. Provision of XXVIII of 1947 saved.
53. Power of State Government to delegate its powers.
54. Rules.
55. Power to remove difficult.
56. Repeal of Bom. XXXI of 1947 and saving.
57. Repeal of Mah. Ord. I of 2014 and saving.
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(Regulation) Act, 2014
LIST OF AMENDMENT ACTS
1. Amended by Mah. 23 of 2014 (25-06-2014)1
1 This indicates the date of commencement of the Act.
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2014 : Mah. VIII] The Maharashtra Money-Lending 7
(Regulation) Act, 2014
MAHARASHTRA ACT No. VIII OF 20141
[THE MAHARASHTRA MONEY-LENDING (REGULATION) ACT, 2014.]
[This Act received the assent of the President on the 2nd April 2014; assent first published in the
Maharashtra Government Gazette, Part IV, on the 4th April 2014.]
An Act to regulate the transactions of money-lending in
the State of Maharashtra.
WHEREAS the harassment at the hands of money -lenders had been increased in the State
resulting into the frequent suicides by farmers ;
AND WHEREAS the then existing enactment on money -lending was found to be inadequate to
protect the farmers-debtors and to prevent them from the harassment by the money-lenders ;
AND WHEREAS under the circumstances it became absolutely necessary for the Government to
take appropriate and stringent social and legal measures to effectively prevent the harassment to the
farmers-debtors at the hands of the money -lenders ; it was expedient to make a new law having be tter
provisions for the regulation and control of transactions of money-lending in the State of Maharashtra ;
AND WHEREAS both Houses of the State Legislature were not in session ;
AND WHEREAS the Governor of Maharashtra was satisfied that circumstances existed which
renderd it necessary for him to take immediate action to make a law, for the purposes aforesaid ; and,
therefore, promulgated the Maharashtra Money -Lending (Regulation) Ordinance, 2014, on the 16th
January 2014 (Mah. Ord. I of 2014);
AND WHEREAS it is expedient to replace the said Ordinance by an Act of the State Legislature;
it is hereby enacted in the Sixty-fifth Year of the Republic of India as follows :—
1. Short title, extent and commencement. — (1) This Act may be called the Maharashtra
Money-Lending (Regulation) Act, 2014.
(2) It extends to the whole of the State of Maharashtra.
(3) It shall be deemed to have come into force on the 16th January 2014.
2. Definitions.— In this Act, unless the context otherwise requires,—
(1) “bank” me ans a banking company or a co -operative bank to which the Banking Regulation
Act, 1949 (10 of 1949) applies and includes,—
(a) the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955);
(b) a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38
of 1959);
(c) a corresponding new bank constituted under the Banking Companies (Acquisition and
Transfer of Undertakings) Act, 1970 (5 of 1970) , or, as the case may be , under the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980); and
(d) any other banking institution referred to in section 51 of the Banking Regulation Act,
1949 (10 of 1949);
(2) “ banking company ” shall have the same meaning as assigned to it by clause ( c) of section 5
of the Banking Regulation Act, 1949 (10 of 1949);
(3) “business of money -lending” means the business of advancing loans whether in cash or kind
and whether or not in connection with, or in addition to any other business ;
1 For Statement of Objects and Reasons (in English) see Maharashtra Government Gazette, Part V-A, Extraordinary No.
6, dated the 24th February 2014, page 21.
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(4) “capital” means a sum of money which a money -lender invests in the business of money -
lending ;
(5) “ company” means a company as defined in the Companies Act, 1956 (1 of 1956) ; or the
Companies Act, 2013 (18 of 2013);
(6) “Co-operative Bank”, “co -operative society”, “multi-state co-operative Bank” and “ primary
credit society ” shall have the same meanings as ass igned to them by clause ( c) of section 56 of the
Banking Regulation Act, 1949 (10 of 1949);
(7) “debtor” means a person to whom a loan is advanced whether in cash or kind and includes his
successor in interest or surety ;
(8) “inspection fee” means the f ee leviable under section 12 in respect of inspection of books of
accounts of a money-lender ;
(9) “interest ” includes any sum by whatsoever name called, in excess of the principal paid or
payable to a money -lender in consideration of, or otherwise in res pect of, a loan, but does not include
any sum lawfully charged by a money -lender for, or, on account of costs, charges or expenses in
accordance with the provisions of this Act, or any other law for the time being in force ;
(10) “ investment in business” m eans total amount invested, from time to time, in business of
money-lending by a money-lender ;
(11) “licence” means a licence granted under this Act ;
(12) “licence fee” means the fee payable in respect of a licence ;
(13) “loan” means an advance at interest whether of money or in kind but does not include,—
(a) a deposit of money or other property in a Government Post Office bank or in any other
bank or in a company or co-operative society ;
(b) a loan to, or by, or a deposit with any society or association registered under the
Societies Registration Act, 1860 (21 of 1860) or any other enactment relating to a public,
religious or charitable object ;
(c) a loan advanced by the Government or by any local authority authorized by the
Government ;
(d) a loan advanced to a Government servant from a fund, established for the welfare or
assistance of Government servants, and which is sanctioned by the State 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 fund from the amount
standing to his credit in the fund in accordance with the rules of the fund ;
(g) a loan to, or by, an insurance company as defined in the Insurance Act, 1938 (4 of 1938);
(h) a loan to, or by, a bank ;
(i) a loan to, or by, or deposit with, any corporation (being a body not falling under any of
the other provisions of this clause), established by or under any law for the time being in force
which grants any loan or advance in pursuance of that Act ;
(j) an advance of any sum exceeding rupees 1[three lakhs made on the basis of a negotiable
instrument as defined in the Negotiable Instruments Act, 1881 (26 of 1881) , other than a
promissory note ;
(k) an advance of any sum exceeding rupees three thousand made on the basis of a hundi
(written in English or any Indian language) ;
1 These words were substituted for the words “three thousand” by Mah. 23 of 2014, s.2 (a).
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(l) an advance made bonafide by any person carrying on any business, not having for its
primary object the lending of money, i f such advance is made in the regular course of his
business;
(m) except for the purposes of sections 29 and 31,—
(i) a loan, by a landlord to his tenant for financing of crops or seasonal finance, of not
more than Rs. 1,000 per acre of land held by the tenant ;
(ii) a loan advanced to an agricultural labourer by his employer ;
Explanation.—The expression “ tenant ” shall have the meaning assigned to it in the Maharashtra
Tenancy and Agricultural Lands Act (LXVII of 1948) , or any other relevant tenancy l aw in force
relating to tenancy of agricultur al lands, and the expressions “ financing of crops” and “seasonal
finance” shall have the meanings assigned to them in the Maharashtra Agricultural Debtors’ Relief Act
(XXVIII of 1947) ;
(14) “ money-lender ” means,—
(i) an individual ; or
(ii) an undivided Hindu family ; or
(iii) a company other than a non – banking financial company regulated under Chapter III B
of the Reserve Bank of India Act, 1934 (20 of 1934);
(iv) an unincorporated body of individuals, who or which,—
(a) carries on the business of money-lending in the State ; or
(b) has his or its principal place of such business in the State; and includes a pawn -
broker, but does not include,—
(i) Government ;
(ii) a local authority ;
(iii) a Bank ;
(iv) a Co-operative Bank ;
(v) a multi-state Co-operative Bank ;
(vi) a Non- Banking Financial Company ;
(vii) a primary credit society ;
(viii) a Regional Rural Bank ;
(ix) the Reserve Bank of India ;
(x) the A gricultural Refinance Corporation constituted under the Agricultural
Refinance Corporation Act, 1963 (10 of 1963); or
(xi) any other banking or financial institution which the State Government may,
by notification in the Official Gazette specify in this behalf ;
(15) “pawn -broker” means a money -lender who in ordinary course of his business advances a
loan and takes goods in pawn as security for payment of such loan ;
(16) “ prescribed ” means prescribed by rules made under this Act ;
(17) “ principal ”, in relation to a loan, means the advance actually made to a debtor whether in
cash or in kind ;
(18) “ Regional Rural Bank ” means a bank established under section 3 of the Regional Rural
Banks Act, 1976 (21 of 1976);
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1[(19) “recognized language ”, means Marathi, Gujarati, Hindi or any other language recognized
by the Government ;]
(20) “ register ” means a register of money-lenders maintained under section 7 ;
(21) “ Registrar General ” means the Registrar General of Money lending appointed under section
3 ;
(22) “ rules ” means the rules made under this Act ;
(23) “ State ” means the State of Maharashtra ;
(24) “ suit to which this Act applies ” means any suit between a money -lender and a debtor or his
successor arising out of a loan advanced whether before or after the commencement of this Act ;
(25) “ trader ” means a person who in the regular course of business buys and sells goods or other
property, whether movable or immovable, and includes,—
(i) a wholesale or retail merchant,
(ii) a commission agent,
(iii) a broker,
(iv) a manufacturer,
(v) a contractor,
(vi) a factory owner,
but does not include an artisan or a person who sells his agricultural produce or cattle or
buys agricultural produce or cattle for his use.
Explanation.— For the purposes of this clause, an “artisan” means a person who does not employ
more than ten workers in a manufacturing process on any one day of the twelve months immediately
preceding.
3. Appointment of Registrar General and other officers to assist him.— (1) The State
Government may, by notification in the Official Gazette , appoint the Registrar General of Money -
Lending and such number of Divisional Registrars, District Registrars and Assistant Registrars as it
thinks proper.
(2) The Registrar Gene ral shall have jurisdiction throughout the State. The Divisional Registrar
shall have jurisdiction throughout his division, the District Registrar shall have jurisdiction throughout
his District and the Assistant Registrar shall have jurisdiction, in such area of the District as the State
Government may, by order, specify. The Divisional Registrar shall be subordinate to the Registrar
General, the District Registrar shall be subordinate to the Divisional Registrar and the Assistant
Registrar shall be subordinate to the District Registrar.
4. Money-lender not to carry on business of money -lending except for area under licence
and except in accordance with terms of licence. — No money-lender shall carry on the business of
money-lending except in the area for which he has been granted a licence and except in accordance
with the terms and conditions of such licence.
5. Application for licence.— (1) Every money-lender shall annually, before such date as may be
prescribed, make an application in the prescribed form for the grant of licence to the Assistant
Registrar of the area within the limits of which, the place where he carries on or intends to carry on the
business of money-lending is situated. When he carries on or intends to carry on such business at more
than one place, a separate application in respect of each such place shall be made to such Assistant
Registrar. Such application shall contain the following particulars, namely :—
(a) the true name in which such money -lender intends to carry on business and the true
name of the person propose to be responsible for the management of the same ;
1 Clause (19) was substituted by Mah. 23 of 2014, s.2 (b).
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(b) if the application is by or on behalf of,—
(i) an individual, the true name and address of such individual;
(ii) an undivided Hindu family, the true names and addresses of the manager and the
adult coparceners of such family ;
(iii) a company, the true names and addresses of the directors, managers or principal
officer managing it ;
(iv) an unincorporated body of individuals, the true names and addresses of such
individuals ;
(c) the area and the place or principal place of the business of money lending in the State ;
(d) the name of any other place in the State where the business of money-lending is intended
to be carried on ;
(e) whether the person signing the application has himself or any of the adult coparceners of
an undivided Hindu family, or any director, manager or principal officer of the company or any
member of the unincorporated body on behalf of which 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
31st day of March immediately preceding the date of application either individually, or in
partnership, or jointly with any other coparc ener or any other person and whether in the same
name or any other name ;
(f) the total amount which 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 than
one, the true names of persons who shall be in the management of business at each such place.
(2) The application shall be in writing and shall be signed,—
(a) (i) if the application is made by an individual, by the individual ;
(ii) if the application is made on behalf of an undivided Hindu family, by the manager
of such family ;
(iii) if the application is made by a company or unincorporated body, by the managing
director or any other person having control of its principal place of business ;
(b) by an agent authorized in this behalf by a power of attorney by the individual money -
lender himself, or the family or the company or the unincorporated body, as the case may be.
(3) The application shall also contain such other particulars as may be prescribed.
(4) Every application shall be accompanied by the prescribed licence fee.
(5) The fee payable under this section shall be paid in the manner prescribed and shall not be
refunded, notwithstanding the fact that the application is withdrawn or subsequently rejected.
6. Grant of licence and entry in register. — On receipt of an application under section 5, the
Assistant Registrar shall make necessary enquiry to satisf y himself about the bonafides and conduct of
the applicant and shall forward the application together with his report, to the District Registrar.
Subject to the provisions of this Act, the District Registrar may, after making such further inquiry, if
any, as he deems fit, grant the ap plicant a licence in such form and subject to such conditions as may
be prescribed, and direct the Assistant Registrar to enter the nam e of such applicant in the register
maintained by him under section 7 :
Provided that, the District Registrar shall gran t such licence in the Scheduled Areas, 1[after
recommendation by] the Gram Sabha and the Panchayat concerned, and where the area of licence
extends to more than one Gram Sabha or Panchayat, then all the concerned Gram Sabhas and
1 These words were substituted for the words “after consultation with” Mah. 23 of 2014, s.3.
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Panchayat Samitis within whose area of jurisdiction the money-lender carries or intends to carry on the
business of money-lending :
Provided further that, the decision taken by majority of the Gram Sabhas concerned by passing a
resolution in any of the above matters shall be binding on the concerned Panchayat Samiti.
Explanation.— For the purposes of this section,—
(i) the expressions “ Gram Sabha ”, “ Panchayat” and “ Scheduled Areas ” shall have the
meanings, respectively, assigned to them in the Maharashtra Village Panchayats Act (III of
1959);
(ii) th e expression “ Panchayat Samiti ” shall have the meaning assigned to it in the
Maharashtra Zilla Parishads and the Panchayat Samitis Act, 1961 (Mah. V 1962).
7. Register of money lenders.— Every Assistant Registrar shall maintain, f or the area of his
jurisdiction, a register of money-lenders in such form as may be prescribed.
1[Provided that, in the Scheduled Areas, the register shall be maintained at the level of Gram
Panchayat.]
8. Refusal of issue of licence.— (1) The grant of a licence shall not be refused except on any of
the following grounds :—
(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 from holding a licence ;
(b) that the applicant has not complied with the provisions of this Act or the rules in respect
of an application for the grant of a licence ;
(c) that the applicant has made willful default in complying with or knowingly acted in
contravention of any requirement of this Act ;
(d) that satisfactory evidence has been produced before the District Registrar that the
applicant or any person responsible or proposed to be responsible for the management of the
business of money-lending has,—
(i) knowingly participated in or connived at any fraud or dishonesty in the conduct of
or in connection with the business of money-lending ; or
(ii) been found guilty of an offence under Chapter XVII or sections 465, 477 or 477 -A
of Chapter XVIII of the Indian Penal Code (45 of 1860).
(2) The District Registrar shall, before refusing a licence under sub -section ( 1), give to the
applicant a reasonable opportunity of producing evidence, if any, in support of the application and of
showing cause why the licence should not be refused ; and record the evidence adduced before him and
his reasons for such refusal.
(3) An appeal shall lie from the decision of the District Registrar refusing a licence under sub -
section (1), to the Divisional Registrar, whose decision thereon shall be final.
(4) An appeal against the decision of the District Registrar under sub -section (1) may be filed
within three months from the date of the decision:
Provided that, the Divisional Registrar may, for reasons to be recorded, entertain the appe al after
the expiry of a period of three months from the date of decision of the District Registrar under
sub-section (1), if he is satisfied that the appellant was prevented, for the reasons beyond his control,
from filing the appeal within a period of three months.
9. Revisionary powers of Registrar General.— The Registrar General may, suo motu or on an
application, call for and examine the record of any enquiry or proceedings of any matter where the
order has been passed or decision has been given by an officer subordinate to him, and no appeal lies
against such decision or order for the purpose of satisfying himself as to the legality and propriety of
1 This proviso was added, by Mah. 23 of 2014, s.4.
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the decision or order and as to the regularity of the proceedings. If during the course of such inqui ry,
the Registrar General is satisfied that the decision or order so called for should be modified, annulled
or reversed, he may, after giving a person likely to be affected thereby an opportunity of being heard,
pass such order thereon as he may seem just.
10. Term of licence.— A licence shall be valid from the date on which it is granted to the 31st
day of March following :
Provided that, where an application for renewal of licence has been received by the Assistant
Registrar within the prescribed peri od, the licence shall, until the application is finally disposed of, be
deemed to be valid.
11. District Registrar’s power to cancel licence. — (1) The District Registrar may, during the
term of any licence, cancel the same by an order in writing on the g round that the person to whom it
was granted has been guilty of any act or conduct for which he might, under section 8, have refused
him the grant of the licence and which act or conduct was not brought to his notice at the time of the
grant.
(2) Before c ancelling a licence under sub -section (1), the District Registrar shall give notice in
writing to the licencee and may hold such inquiry as may be necessary.
(3) An appeal shall lie from an order of the District Registrar cancelling a licence under sub-
section (1), to the Divisional Registrar whose decision thereon shall be final.
(4) An appeal against the order of the District Registrar under sub -section (1) may be filed within
three months from the date of the order :
Provided that, the Divisiona l Registrar may, for the reasons to be recorded, entertain the appeal
after the expiry of the period of three months from the date of the order of the District Registrar under
sub-section (1), if he is satisfied that the appellant was prohibited, for the r easons beyond his control,
from filing the appeal within the period of three months.
12. Levy of inspection fee.— (1) An inspection fee shall, in addition to the licence fee leviable
under section 5, be levied on a money -lender applying for a renewal of a licence at the rate of one per
cent. of the maximum capital utilized by him during the period of licence sought to be renewed or
1[fifty thousand rupees, whichever is less.
(2) An application for renewal of a licence shall not be allowed unless the insp ection fees under
sub-section (1) is paid.
Explanation.— For the purposes of this section, “maximum capital ” means the highest total
amount of the capital sum which may remain invested in the money -lending business on any day
during the period of licence.
13. Suits by money lenders not holding licence.— (1) No court shall pass a decree in favour of
a money -lender in any suit unless the court is satisfied that at the time when the loan or any part
thereof, to which the suit relates was lent, the money -lender held a valid licence, and if the court is
satisfied that the money-lender did not hold a valid licence, it shall dismiss the suit.
(2) Nothing in this section shall affect the powers of a Court of Wards, or an Official Assignee, a
receiver, an administrator or a Court under the provisions of the Presiden cy Towns Insolvency Act,
1909 (3 of 1909) , or the Provincial Insolvency Act, 1920 (5 of 1920) or any other law in force
corresponding to that Act, or of a liquidator under the Companies Act, 1956 (1 of 1956 ), or the
Companies Act, 2013 (18 of 2013), as the case may be, to realise the property of a money-lender.
14. Application for cancellation of licence .— (1) Any person may, during the validity of a
licence, file an application to the District Registrar for the cancellation of the licence issued to a
money-lender on the ground that such money -lender has been guilty of any act or conduct for which
the District Registrar may under section 8, refuse him the grant of a licence. At the time of filing his
1 These words were substituted for the words “rupees one hundred, whichever is more” by Mah. 23 of 2014, s.5.
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application, the said person shall deposit such amount n ot exceeding 1[five hundred rupees] , as the
District Registrar may deem fit.
(2) On the receipt of such application and deposit or of a report to that effect from an officer
acting under section 16, the District Registrar shall hold an inquiry and if he is satisfied that the money-
lender has been guilty of such act or conduct, he may cancel the licence of the money -lender and may
also direct the return of the deposit made under sub-section (1).
(3) If in the opinion of the District Registrar 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.
15. Registrar General and his subordinates to have powers of Civil Court. — For the
purposes of sections 6 and 16, the Registrar General, Divisional Registrar, District Registrar, Assistant
Registrar and the officer authorized under section 16; and for the purposes of 2[section 14 and 18], the
District Registrar shall have and may exercise the same powers as are vested in a Civil Court under the
Code of Civil Procedure, 1908 (5 of 1908), in respect of the following matters, namely :—
(a) enforcing the attendance of any person and examining him on oath ;
(b) compelling the production of documents and material objects ;
(c) issuing commissions for the examination of witnesses ; and
(d) proof of facts by affidavits.
16. Power of authorized officer to require production of records or documents. — For the
purpose of verifying, whether the business of money lending is carried on in accordance with the
provisions of this Act, Registrar General, Divisional Registrar, District Registrar and Assistant
Registrar or any other officer authorized by the State Governm ent in this behalf may require any
money-lender or any person in respect of whom the Registrar General, Divisional Registrar, District
Registrar and Assistant Registrar or the officer authorized by him, has reason to believe that he is
carrying on the busi ness of money -lending in the State, to produce any record or documents in his
possession which in his opinion is relevant for the purpose and thereupon such money-lender or person
shall produce such record or documents. The Registrar General, Divisional Registrar, District Registrar
and Assistant Registrar or officer so authorized may, after reasonable notice, at any reasonable time
enter and search without warrant any premises where he believes such record or documents to be kept
and inspect such record or documents and may ask any question necessary for interpreting or verifying
such record.
17. Disposal of property pledged with money-lender carrying on business of money lending
without valid licence. — (1) If upon the inspection of record and documents made under section 16,
the inspecting officer is satisfied that the money -lender is in possession of property pledge to him by a
debtor as security for the loan advanced by money -lender in the course of his business of money -
lending without a valid licence, the inspecting officer shall require the money -lender to deliver
forthwith the possession of such property to him.
(2) Upon the property being delivered to him, the inspecting officer, if he is not the Di strict
Registrar, shall entrust it to the District Registrar and the District 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 the property under sub -section (1) or sub -section ( 2), the District Registrar
shall, after due verification and identity thereof, return it to the debtor who has pledged it or, where the
debtor is dead, to his known heirs.
(4) If the debtor or his known heirs cannot be traced, the Dist rict Registrar shall, within ninety
days from the date of taking possession of the property, publish a notice in the prescribed manner
inviting claims thereto. If, before the expiry of the said period, a claim is received, whether in answer
1 These words were substituted for the letters and figures “Rs. 100” by Mah. 23 of 2014, s.6.
2 These words and figure were substituted for the word and figure “section 14” by Mah. 23 of 2014, s. 7.
2014 : Mah. VIII] The Maharashtra Money-Lending 15
(Regulation) Act, 2014
to the notice o r otherwise, he shall adjudicate upon and decide such claim. If the District Registrar is
satisfied that any claim is valid, he shall deliver the possession of the property to the person claiming it
on his giving a receipt therefor; and such delivery of th e property to the person claiming it shall
discharge the District Registrar of his liability in respect of such property against any other person. If
the claim is refused, the property shall stand forfeited to the State Government.
(5) Whether the possession of the property pledged by a debtor cannot, for any reason (including
identity thereof) be delivered to him, then the money -lender to whom it was pledged shall be required
to pay to the debtor or if he is dead, to his known heir, the value of such prop erty 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 arrear of land revenue; and on recovery of the value, it shall be delivered to
the debtor by whom such property was pledged or, as the case may be, to the heir.
(6) If there is any difference of opinion between the money -lender and the debtor or, as the case
may be, his heir on the question of value of the property or its identity, the question shall be referred to
the Divisional Registrar for decision and his decision on the question shall be final.
(7) The value of the property may be determined with the assistance of the services of an expert
appointed by the State Government in that behalf. The exper t may be paid such honoraria as the State
Government or any officer not below the rank of Tahsildar appointed by it may, by an order in writing,
from time to time, in relation to any area or areas, determined.
18. Return of immovable property acquired in course of money lending.— (1) If, on the
basis of facts disclosed, during verification under section 16 or inspection under section 17, or by an
application from a debtor or otherwise, the District Registrar has reason to believe that any immovable
property, which has come in possession of the money-lender by way of sale, mortgage, lease, exchange
or otherwise, within a period of 1[fifteen years] from the date of verification or the inspection or the
date of receipt of application from debtor, in the nature of the property offered by the debtor to the
money lender as a security for loan advanced by the money -lender in course of money lending, the
District Registrar may, himself or through an inquiry officer, to be appointed for the purpose, in the
manner prescribed, hold further inquiry into the nature of the transaction.
(2) If upon holding the inquiry as per sub -section (1), the District Registr ar is satisfied that the
immovable property came in possession of the money -lender as a security for loan advanced by the
money-lender during the course of money -lending, the District Registrar may, notwithstanding
anything contained in any other law for the time being in force, after recording the reasons, declare the
instrument or conveyance as invalid and may order restoration of possession of the property to the
debtor who has executed the instrument or conveyance as a security or to his heir or success or, as the
case may be.
(3) Before passing an order or giving decision as per sub -section (2), the District Registrar shall
give an opportunity to the person concerned to state his objections, if any, within fifteen days from the
date of receipt of notice by him and may also give personal hearing, if he so desires.
(4) Any person aggrieved by the order or decision of the District Registrar under sub -section (2)
may, within one month from the date of order or decision, appeal to the Divisional Registrar :
Provided that, the Divisional Registrar may admit the appeal after expiry of the period of one
month, if the appellant satisfies him that he had sufficient cause for not preferring the appeal within the
period.
(5) The order passed by the Divisional Registrar in appeal preferred under sub-section (4) shall be
final.
(6) Subject to the appeal provided under sub -section (4), the order passed or decisions given by
the District Registrar under sub -section (2), shall be sufficient conveyance and it shall be t he duty of
every officer entrusted with the work relating to maintenance of land records under the Maharashtra
Land Revenue Code, 1966 (Mah. XLI of 1966 ), or under any other law for the time being in force, to
give effect to such order in his records.
1 These words were substituted for the words “five years” by Mah. 232 of 2014, s.8.
16 The Maharashtra Money-Lending [2014 : Mah. VIII
(Regulation) Act, 2014
19. Court’s power to cancel or suspend licence. — (1) ( i) A Court passing an orde r of
conviction against a money-lender for an offence under this Act, or
(ii) a Court trying a suit, if satisfied that such money -lender has committed such contravention of
the provisions of this Act or the rules as would, in its opinion, make him unfit to carry on the money -
lending ,—
(a) may order that all the licences held by such money -lender in the State be cancelled or
suspended for such time as it may think fit, and
(b) may, if it thinks fit, declare any such money -lender, or if any money -lender is an
undivided Hindu family, a company or an unincorporated body, such family, company or body
and also any person responsible for the management of the money -lending carried on by such
family, company or body, to be disqualified from holding any licence in the State, for such time
as the Court may think fit :
Provided that, where any licence held by any money - lender is suspended or cancelled or
any money -lender is disqualified from holding any licence 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, and the Court which passed the order or the Court of appeal may, if it thinks fit,
pending the appeal, stay the operation of the order under this section.
(2) Where a Court convicts a money -lender of an offence under this Act, or makes an order or
declaration, under sub-clause (a) or (b) of clause (ii) of sub-section (1), it shall cause the particulars of
the conviction, order or declaration, as the case may be, to be endorsed on all the licences held by the
money-lender convicted or by any other person affected by the order or declaration and shall cause
copies of its order or declaration to be sent to the District Registrar by whom the licences were granted
for the purpose of entering such particulars in the registers.
(3) Any licence required by a Court for endorsement in accordance with sub -section (2) shall be
produced by the person by whom it is held in 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 licence so
required shall be liable, on conviction, to a fine not exceeding rupees one thousand for 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.
20. No compensation for suspension or cancellation of licence. — Where any licence is
suspended or cancelled under this Act, no person shall be entitled to any compensation or the refund of
any licence fee or inspection fee.
21. Persons debarred from doing money lending during period of suspension or
cancellation of licence.— A person whose licence has been suspended or cancelled in accordance with
the provisions of this Act shall, during the period of suspension or cancellation, as the case may be, be
disqualified for carrying on business of money-lending in the State.
22. Person whose licence is suspended or cancelled not to apply without giving particulars
of endorsement or of disqualificati on.— No person whose licence has been endorsed under section
19 or who has been disqualified from holding a licence shall apply for, or be eligible to hold, a licence,
without giving particulars of such endorsement or disqualification.
23. Promissory note, Bond, etc., to be factual. — No money-lender shall take any promissory
note, acknowledgment, bond or other writing which does not state the 1[actual amount of the loan and
rate of interest] or which states such amount wrongly or execute any instrument in whic h blanks are
left to be filled in after execution, without mentioning the date and amount of loan.
24. Duty of money -lender to keep accounts and furnish copies. — (1) Every money -lender
shall keep and maintain a cashbook and a ledger in such form and in su ch manner as may be
prescribed.
1 These words were substituted for the words “actual amount of the loan” by Mah. 23 of 2014, s.9.
2014 : Mah. VIII] The Maharashtra Money-Lending 17
(Regulation) Act, 2014
(2) Every money-lender shall,—
(a) deliver or cause to be delivered,—
(i) to the debtor within thirty days from the date on which a loan is made, a statement
in any recognized language 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 debtor and of the money-lender and the rate of interest charged:
Provided that, no such statement shall be required to be delivered to a debtor, if he is
supplied by the money -lender with a pass book which shall be in the prescribe d form and
shall contain an up to date account of the transactions with the debtor ;
(ii) to the Assistant Registrar within the said period a statement containing the
particulars referred to in sub-clause (i);
(b) upon repayment of the loan in full, mark indelibly every paper signed by the debtor with
words indicating payment or cancellation, and discharge every mortgage, restore every pledge,
return every note and cancel or re-assign every assignment given by the debtor as security for the
loan.
(3) Notwithstanding anything contained in sub -clause ( ii) of clause ( a) of sub -section ( 2), the
State Government may, by an order in writing, permit such class of money-lenders as may be specified
in the order to deliver or cau se to be delivered to the Assistant Registrar a statement containing the
particulars referred to in sub -clause(i) of clause ( a) of sub -section ( 2) in respect of all loans made
during every such period as may be specified in the order, and upon the issue of such order a money -
lender electing to deliver a periodical statement as provided in this sub-section, shall deliver or cause to
be delivered the same within a period of thirty days from the date of expiry of every such period.
(4) No money -lender shall r eceive any payment from a debtor on account of any loan without
giving him a plain and complete receipt for such payment.
(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 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. The money -lender
shall maintain the duplicates of such receipts in a separate register.
25. Delivery of s tatements of accounts and copies thereof by money -lenders.— (1) Every
money-lender shall deliver or cause to be delivered every year to each of his debtors a legible statement
of such debtor’s account signed by the money -lender or his agent of any account that may be
outstanding against such debtor. The statement shall show,—
(i) the amount of principal, the amount of interest and the amount of fees referred to in
section 26, separately, due to the money-lender atExcerpt shown. Open the full act in Lexace.