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GUJARAT MONEY-LENDERS RULES, 2013

GUJARAT MONEY-LENDERS RULES, 2013

GUJARAT MONEY-LENDERS RULES, 2013

PREAMBLE

Whereas certain draft rules were published as required under sub-section (1) of the section 55 of the Gujarat Money-Lenders Act, 2011 (Guj. 14 of 2011) at pages 295-1 to 295-22 in the Gujarat Government Gazette, Extra Ordinary, Part IV-B, dated the 14th August, 2012 under the Government Notification Agriculture and Co-operation Department No. GHKH-62-2012-GML10-2011-865-CHH dated the 14th August, 2012 inviting objection or suggestion from all persons likely to be affected thereby within a period of thirty days from the date of publication of the said notification in the Official Gazette.

And Whereas, Objections or Suggestions received from the public on the said draft have been considered by the Government.

Now Therefore, in exercise of the powers conferred by section 55 of the Gujarat Money-Lenders Act, 2011 (Guj. 14 of 2011), the Government of Gujarat hereby makes the following rules, namely.-

Rule - 1. Short title and extent.

(1)     These rules may be called the Gujarat Money-Lenders Rules, 2013.

(2)     They shall extend to the whole of the State of Gujarat.

Rule - 2. Definitions.

In these rules, unless there is anything repugnant in the subject or context-

(a)      "Act" means the Gujarat Money-Lenders Act, 2011;

(b)      "Form" means a form appended to these rules;

(c)      "Section" means a section of the Act.

Rule - 3. Application for Registration.

(1)     A Money-Lender desiring to carry on the business of Money-lending in any area shall make an application in Form No. 1, for grant of a registration certificate and for renewal of registration last held to the Registrar concerned in Form No. 2. The application shall be delivered at the office of the Registrar during office hours either personally or in writing through an agent authorized in this behalf by registered post addressed to the Registrar.

(2)     An application for grant of a registration certificate for the first time may be made on any date and an application for renewal of registration may be made on any date within six months prior to the date of expiry of the registration:

Provided that the Registrar may, in any case in which he is satisfied that the applicant could not make an application for renewal of a registration within the prescribed period for reasons beyond his control, he may for reasons to be recorded in writings and one such delay and may renew the registration on payment of renewal fee and penalty prescribed under rule 9.

(3)     Application Fees for registration or renewal of registration as provided under rule 9 shall be paid by applicant and the receipt of same shall be enclosed with the Application.

Rule - 4. Certificate of Registration.

Certificate of Registration under sub-section (i) of section 7 shall be issued in Form No. 3, for a period of five years from the date on which it is granted.

Rule - 5. Register of Money-Lenders.

(1)     The Register of Money-Lenders required to be maintained under section 4 shall be in Form No. 4.

(2)     The Register of Non-Banking Finance Company registered under the provision of the Reserve Bank of India Act, 1934, required to be maintained under sub-section (2) of section 5 shall be in form No. 5.

Rule - 6. Intimation by Non-banking finance companies.

Non-banking finance companies shall intimate to the concerned Registrar in Form-C about their Registration with the Reserve Bank of India under the provisions of the Reserve Bank of India Act, 1934.

Rule - 7. Change in Partnership or management.

(1)     If any change in partnership or management occurs during the currency of a registration, the registration shall be automatically, cancelled.

(2)     If during the currency of registration a person is appointed as responsible for the management of the business of money-lending, the Money-Lender shall, within seven days, communicate to the Registrar the name of the persons so appointed; and shall satisfy the Registrar that the person appointed as such is not disqualified from holding a registration on any of the grounds specified in section 7 and sub-section (1) of section 10.

Rule - 8. Change of address.

A Money-Lender shall communicate any change in address of business with full details thereof to the Registrar within seven days of such change.

Rule - 9. Manner of payment of Registration fees, Renewal fees and penalty for delayed renewal Application.

(1)     At the time of presenting the application in Form 1 the Registration fee of Rs. 5000/- under sub-section (1) of section 7 shall be paid in cash or by crediting the amount to Government account at a treasury, sub-treasury or the State Bank of India, receipted Chalan to the Registrar.

(2)     The renewal fees of Rs. 3000/- under sub-section (1) of section 9 shall be paid by the Money-Lenders alongwith an application made for renewal in Form 2 in the manner prescribed in sub-rule (1) above.

(3)     Any application received within three months from the date of the expiry of the registration for renewal of registration shall be valid. The penalty of Rs. 500/- shall be recovered for the late renewal application in the manner prescribed under sub-rule (1) above from the Money-Lenders.

Rule - 10. Reasons for Refusal for grant or renewal of.

In case of above grant of a registration or renewal of registration is refused, the registrar shall communicate the reasons for such refusal to the applicant.

Rule - 11. Appeal against the order of the Registrar refusing the grant of a registration or renewal of Registration.

(1)     An appeal under sub-section (3) of section 10 against the order of a Registrar refusing the grant or renewal of registration shall be instituted within sixty days from the date on which the order of refusal to grant or renewal of registration is communicated to the Money-Lender. Such appeal shall be accompanied by a certified copy of the order appealed against and shall contain in brief the ground of appeal.

(2)     The Registrar General shall decide the appeal after hearing the appellant or his pleader, as the case may be and the decision of the Registrar General thereon shall be final.

Rule - 12. Display of registration.

Every Money-Lender shall exhibit his Certificate of Registration in a prominent place on the premises where he carries on the business of money-lending. He shall also exhibit outside his premises a signboard showing the name of a person who owe, business of money-lending and the registration number as shown in the Certificate of Registration.

Rule - 13. Grant of duplicate Certificate of Registration.

(1)     When a Certificate of Registration granted to a Money-Lender is lost, mutilated, destroyed, torn or otherwise defaced in such a manner as to render it illegible, the Money-Lender may make an application to the Registrar for the grant of a duplicate Certificate of Registration under section 11.

(2)     Where a duplicate Certificate of Registration is required on the ground that the original registration is torn or defaced, the Money-Lender shall surrender the original Certificate of Registration to the Registrar along with an application made under sub-rule (1).

(3)     An Application under sub-rule (1) shall be accompanied by a fee of Rs. 500/-. The fee shall be paid in the manner prescribed under sub-rule (1) of rule 9 of these rules.

(4)     On receipt of such application, if the Registrar after making such inquiry as may be deemed necessary is satisfied that a duplicate Certificate of Registration may be issued to the Money-Lender, he shall make a note of the grant of a duplicate Certificate of Registration to the Money-Lender against his, name in the Register.

(5)     The duplicate Certificate of Registration so issued shall bear on its face the number and date of the original Certificate of Registration and shall also bear the word "Duplicate".

Rule - 14. Forms of cash book, ledger, statement of loan, receipt and security register under section 21.

The cash book and ledger to be maintained by a Money-Lender under sub-section (1) of section 21, shall be in Form Nos. 7, 8 and 9 respectively. The register of security under sub-section (6) of section 21 shall be in Form No. 10. The statement of the loan under clause (a) of sub-section (2) of section 21 shall be in Form No. 11. The receipts of amount shall be in Form No. 12. The receipt of mortgage for the security of loan shall be in Form No. 13. The pass book under sub-clause (ii) of clause (a) of sub-section (2) of section 21 shall be in Form No. 14.

Every Money lender shall deliver or cause to be delivered to the Registrar within thirty days from the date on which a loan is made as prescribed in Form No. 10.

Rule - 15. Statement of yearly accounts to be delivered by Money-Lender to debtor etc.

The annual statement of accounts to be delivered by a Money-Lender to each of his debtors under sub-section (1) of section 22 shall be in Form No. 15 by Registered Post Acknowledgement.

Rule - 16. Submission of Audit report.

(1)     The audit report shall be submitted to the Registrar within 180 days after closer of the year under sub-section (1.) of section 23.

(2)     The audit report shall disclosed adherence of Money-Lender to statutory obligations under sub-section (2) of section 23.

Rule - 17. Notice and information to be given on assignment of loan.

The notice to be given to an assignee under clause (a), the statement of information to be supplied to an assignee under clause (b) and the notice to be given to the debtor under clause (c) of sub-section (1) of section 35 shall be in the Forms Nos. 16, 17 and 18 respectively.

Rule - 18. Form of application under section 31.

The application to be made by a debtor under sub-section (1) of section 31 shall be in Form No. 19.

Rule - 19. Copies of documents on payment of fees.

Party to any application, inquiry, or appeal under the Act before the Assistant Registrar, Registrar or Registrar General, may apply to the Assistant Registrar, Registrar or Registrar General, as the case may be, for a copy of any document in the record of such application, inquiry or appeal, on payment fees of the copy of document shall be provided on payment of Rs. 2/- per page to the applicant.

Rule - 20. Forms of notice for production of record.

The notice to be issued for enforcing the attendance of any person for production of record on documents under section 19 in connection with an inquiry shall be in Form No. 20.

Rule - 21. Amount of Fine.

Subject to the provision contained in section 49 of the Act, the Registrar General or any other officer authorized by him in this behalf, may accept per offence from Money-Lender who has committed or is reasonably suspected of having committed any offence under rules 6, 7 and 12 by way of compounding of such offence, a sum of minimum Rs. 50/- but not exceeding Rs. 500/- as fine if the offence is committed for the first time. The Money-Lender shall thereupon remit the amount within ten days from the date of an order in the manner as prescribed under sub-rule (1) of rule 9 of these rules or within such further period not exceeding thirty days in aggregate as the Registrar General may for sufficient cause grant in that behalf.

Rule - 22. Publication of notice inviting claims to pledge properties.

Where the property pledged by a debtor to the Money-Lender is taken in his custody by the Registrar under sub-section (1) of section 20 and the debtor or his known heirs cannot be traced, the Registrar shall, within ninety days from the date of taking possession of the property, publish notice in Form No. 21 for three consecutive days in at least two leading newspapers one of which shall be in Gujarati, in circulation within the jurisdiction of the Registrar inviting claims to the said property and act in accordance with the provision of section 20.

Rule - 23. Repeal and savings.

The Bombay Money-Lenders Rules 1959 are hereby repealed:

Provided that anything done or action taken under the said rules shall, so far as it is not in consistent with these rules, be deemed to have been done or taken under the corresponding provisions of these rules, as if the said provision was in force when such thing was done or such action taken, and shall continue in force accordingly, unless and until superseded by anything done or any action taken under these rules.