Arunachal Pradesh Money Lending (Regulation) Act, 2018
No: 9 Dated: May, 09 2018
THE ARUNACHAL PRADESH MONEY LENDING (REGULATION) ACT, 2018
(ACT NO. 9 OF 2018)
WHEREAS, harassment at the hands of money lenders had been increasing in the State of Arunachal Pradesh at an alarming rate;
AND WHEREAS, under the circumstances, it became absolutely necessary for the State Government to take appropriate and stringent social and legal measure to effectively prevent the harassment to the farmers, debtors at the hands of unscrupulous money lenders;
AND WHEREAS, it is felt expedient to make a law having better and stringent provisions for the regulation and control of transactions of money lending in the State of Arunachal Pradesh ;
NOW THEREFORE, BE it enacted by the Legislative Assembly of Arunachal Pradesh in the Sixty-ninth Year of the Republic of India as follows,-
1. Short title, extent and commencement:- (1) This Act may be called the Arunachal Pradesh Money Lending (Regulation) Act, 2018
(2) It shall extend to the whole of the State of Arunachal Pradesh.
(3) It shall come into force on such date as the State Government, by notification · in the Official Gazette apppoint.
2. Definition:- In this Act. unless the context otherwise requires,-
(1) "Bank" means a banking company or a co-operative bank to which the Banking Regulation Act, 1949applies and includes,-
(a) the State Bank of India constituted under the State Bank of India Act, 1955;
(b) a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 ;
(c) a corresponding new bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, or, as the case may be, under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980; and
(d) any other banking institution referred to in section 51 of the Banking Regulation Act, 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 ;
(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 ;
(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, 1956or the Companies Act, 2013 ;
(6) "Co-operative Bank", "co-operative society", multi-state co-operative Bank" and "primary credit society" shall have the same meanings as assigned to them by clause ( c) section 56 of the Banking Regulation Act, 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 fee 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 respect 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" means 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 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;
(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 three lakh made on the basis of a negotiable instrument as defined in the Negotiable Instruments Act, 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);
(l) an advance made bonafide by any person carrying on any business, not having for its primary object the lending of money, if 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 1,000 per acre of land held by the tenant;
(ii) a loan advanced to an agricultural labourer by his employer;
(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 1118 of the Reserve Bank of India Act, 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 Agricultural Refinance Corporation constituted under the Agricultural Refinance Corporation Act, 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;
(19) "register'' means a register of money-lenders maintained under section 7;
(20) "Registrar General" means the Registrar General of Money-Lending appointed under section 3;
(21) "rules" means the rules made under this Act;
(22) "State" means the State of Arunachal Pradesh;
(23) "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;
(24) "trader" means a person who in the regulafcourse 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, 4.
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 ariy one day of the twe.lve months immediately preceding