Maharashtra Money Lending (Regulation) Act, 2014
No: 8 Dated: Apr, 04 2014
Maharashtra Money Lending (Regulation) Act, 2014
ACT No. VIII OF 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 moneylending was found to be inadequate to protect the farmersdebtors 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 better 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 ;
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 (Ordinance 1 of 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" means 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 ;
(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", "multistate co-operative Bank" and "primary credit society" shall have the same meanings as assigned 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 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 ;