[THE MADHYA PRADESH ANUSUCHIT JANJATI
SAHUKAR VINIYAM, 1972][1] [Act No. 2 of 1972] [19th October, 1972] In exercise of the powers conferred by
sub-paragraph (2) of paragraph 5 of the Fifth Schedule to the Constitution of
India and after consultation with the Tribes Advisory Council, the Governor of
Madhya Pradesh hereby makes the following Regulations, namely-- (1)
These Regulations may be called The
Madhya Pradesh Anusuchit Janjati Sahukar Viniyam, 1972. (2)
They shall extend to all the Scheduled
Areas in Madhya Pradesh. (3)
They shall come into force on such
date1 as the State Government may, by notification appoint. In
these Regulations, unless the context otherwise requires,-- (i)
"Bank" means a banking
company, as defined in Section 5 of the Banking Regulation Act, 1949 (X of
1949) and includes the State Bank of India constituted under the State Bank of
India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of
India (Subsidiary Banks) Act, 1959 (38 of 1959) and any other financial
institution as the State Government may, by notification specify in this
behalf; (ii)
"Co-operative Society" means
a society registered or deemed to be registered under the Madhya Pradesh
Co-operative Societies Act, 1960 (No. 17 of 1961); (iii)
"Court" includes a Court
acting in the exercise of insolvency jurisdiction; (iv)
"Debtor" means a member of
Scheduled Tribes to whom a loan is advanced and includes a
successor-in-interest or surety; (v)
"Interest" includes any
amount, by whatever name called, paid or payable to a lender in consideration
of or otherwise in respect of a loan in excess of the Principal, but does not
include any sum lawfully charged by a lender in accordance with the provisions
of these Regulations or any other law for the time being in force for or on
account of Legitimate costs, charges or expenses. (vi)
"Licence" means a
money-lender's licence granted under these Regulations and "licensed"
shall be construed accordingly; (vii)
"Loan" means an advance of
money or articles, goods or materials for interest, and includes any
transaction which the Court finds in substance to amount to such an advance,
but does not include-- (a)
a deposit of money or other property
in a bank, Post Office Saving Bank or Co-operative Society; (b)
an advance made by the Government or
by any person authorised by the Government to make advance in their behalf or
by any local authority; (c)
an advance made by a Bank or a
Co-operative Society. (viii)
"Member of Scheduled Tribes"
means a member of any tribe, tribal community or part of or group within tribe
or tribal community specified as such with respect to the State of Madhya
Pradesh under Article 342 of the Constitution of India. (ix)
"Money-lender" means a
person whose business is that of advancing and realising loans and shall
includes a trader and shall also include, subject to the provision of Section
3, the legal representatives and successors in interest whether by inheritance,
assignment or otherwise of the person who advanced the loan but does not
include a bank or a Co-operative Society and the expression
"Money-lending" shall be construed accordingly; Explanation.
Where a money lender who is not a resident of the Scheduled Area carried on the
business of money-lending through his agent who resides in such area, such
agent shall be deemed to be the money-lender in respect of that business; (x)
"Pledge" means an article
pledged; (xi)
"Pledger" means a person
delivering an article for pledging it to a money-lender; (xii)
"Principal" means the actual
advance made to a debtor whether in cash or kind; (xiii)
"Scheduled Area" means any
area declared to be Scheduled Area within the State of Madhya Pradesh under
paragraph 6 of the Fifth Schedule to the Constitution of India; (xiv) "Trader" means a person who carried on the
business of taking goods and chattels in security for a loan advanced by him; Explanation.
Every person who keeps a shop for the purchase or sale of goods or chattels, or
for taking in goods or chattels by way of security for money advanced thereon
and who purchases, receives or takes in goods or chattels and pays, advances or
lends thereon any sum of money with or without an agreement or understanding
expressed or implied, that those goods or chattels may be afterwards redeemed
or repurchased on any terms is a trader with in the meaning of this clause; (xv)
"Year" means a year reckoned
according to the British calendar or such other period as may be prescribed by
rules. (1)
No person shall, on or after the date
on which these Regulations come into force, carry on business of money-lending
at any place in the Scheduled Areas, without obtaining money-lender's licence under
these Regulations. (2)
Where a person has more than one shop
or place of business of money-lending, whether in the same place, town or
village, he shall obtain a separate money-lender's licence in respect of each
such shop or place of business. (3)
Where the business or money-lending is
done by-- (a)
a registered firm the licence shall be
obtained in the name of the Manager described as such in the licence; (b)
an undivided Hindu family, the licence
shall be obtained in the name of the manager described as such in the licence; (c)
any other association of individuals,
not required to be registered under Section 11 of the Companies Act, 1956
(Central Act 1 of 1956), a separate licence shall be obtained by each such
individual in his name describing himself as member of the association: Provided
that nothing contained in this sub-section shall affect the operation of
Section 69 of the Indian Partnership Act, 1932 (Central Act IX of 1932). (1)
(a) Every application for a
money-lender's licence shall be in writing and shall be made to such authority
as may be prescribed. (b)
Every such application shall be accompanied by such fee, not exceeding
twenty-five rupees as the State Government may, from time to time by
notification, determine. (c)
The fee payable under clause (b) shall be paid in such manner as may be
prescribed. (d)
Where the licence applied for is refused, the fee paid under clause (b) shall
be refunded in full and where the application for the licence is withdrawn by
the applicant before the licence is actually granted, the fee paid less ten
percent thereof shall be refunded. (2)
Every licence shall be granted in such
form and subject to such conditions as may be prescribed. (3)
The licensing authority may, by order
in writing, refuse to grant a licence if such authority is satisfied after
making due enquiry, (a)
that the applicant has not complied
with the provisions of these Regulations or the rules made thereunder in respect
of an application for the grant of a licence; (b)
that the applicant has knowingly acted
in contravention of any requirement of these Regulations; (c)
that the applicant 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 any offence under
Chapter XVII or Chapter XVIII of the Indian Penal Code 1860 (Central Act XLV of
1860). Explanation.
For the purpose of this clause, the expression "due enquiry" shall
include enquiry relating to previous background, rates of interest charged,
manner of recoveries etc. by the applicant in the past: Provided
that before passing an order refusing to grant a licence on any of the grounds
specified above other than the grounds specified in sub-clause (ii) of clause
(c), the applicant shall be given a reasonable opportunity of being heard. (4)
The licensing authority shall, in the
matter of granting or refusing to grant a licence by subject to control and
direction of the State Government or such other authority as may be prescribed. (5)
Any person aggrieved by an order of
the licensing authority under sub-section (3) may, within one month from the
date of communication of such order to him, appeal to the prescribed authority. (6)
Every licence granted under this
section shall, subject to the provisions of sub-section (7), expire on the last
day of the year for which it was granted. (7)
A licence granted under sub-section
(2), may be renewed from year to year and the provisions of sub-sections (1) to
(4) shall apply in relation to the renewal of a licence, as they applied in
relation to the grant of a licence. No
Money-lender shall change his place of business without previous notice to the
licensing authority. (1)
Every money-lender shall always keep
exhibited in large characters over the outer door of his shop or place of
business his name with the words "licensed money-lender" in the chief
language of the locality. (2)
Every money-lender shall always keep
exhibited over the outer door of his shop or place of business a board
specifying the name of the debt collector, if any, employed under Section 15. (1)
No money lender shall charge interest
or any loan advanced at a rate exceeding. (a)
six per cent per annum simple
interest, where the loan is secured; and (b)
twelve per cent per annum simple
interest, where the loan is not secured. (2)
A money-lender may demand or take from
the debtor such charges as may be prescribed. (3)
A money-lender shall not demand or
take from the debtor any interest in excess of that payable under sub-section
(1) or any charge in excess of that prescribed under sub-section (2). (1)
Every money-lender shall keep and
maintain a cashbook and ledger in such form and in such manner as may be
prescribed. (2)
Every money-lender shall deliver or
cause to be delivered to the debtor within thirty days from the date on which a
loan is made, a statement in the chief language of the locality showing in
clear and distinct terms the amount and date of the loan and of its maturity,
the nature of 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 prescribed
form and shall contain an up-to-date account of the transactions with the
debtor. (3)
Upon repayment of a loan in full,
every money-lender shall 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 reassign every assignment given
by the debtor as security for the loan. (4)
No money-lender shall accept by way of
security for a loan, from a debtor his standing crop, whether existing or
future, or his agricultural cattle. (5)
No money-lender shall receive any
payment in cash or kind from a debtor on account of any loan unless he grants
to such debtor a signed receipt for the payment, duly witnessed by such
authority as may be prescribed. (6)
(a) No money-lender shall accept from
a debtor any article as a pawn, pledge or security for a loan unless he grants
to such debtor 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. (b)
The documents executed by the debtor in favour of a money-lender shall be duly
witnessed by the authority prescribed under sub-section (5). (7)
No money-lender shall get the loan
advanced by him to a debtor renewed at any time during the currency of the loan
by including in the amount originally advanced the interest accruing thereon or
otherwise so as to defeat the provisions of these Regulations or any other law
for the time being in force. All
payments made by the debtor shall be credited first in the account of interest
and the residue, if any, of any payment more than sufficient to discharge the
balance of interest due at the time, it is made, shall be credited to the
debtor in the account of the principal or in the alternative such of the
payments shall be credited first in the account of principal as the
money-lender may determine and the remaining payments shall be credited in the
account of interest calculated. When the balance of interest is fully
discharged, the residue of the payment, if any, shall be further credited in
the account of the principal. (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 accounts signed by the money-lender or his agent of any amount
that may be outstanding against such debtor. The statement shall show: (a)
the amount of the principal and the
amount of interest, separately, due to the money lender; (b)
the amount of every payment already
received by the money-lender in respect of the loan during the year together
with the date on which each payment was made; (c)
All payments whether credited in the
account of the principal or in the account of interest; (d)
the amount of principal and interest
remaining unpaid. (2)
The statement referred to in
sub-section (1) shall be signed by the money-lender or his agent and it shall
be in such and shall be supplied to the debtor on or before such date as may be
prescribed. (3)
Notwithstanding anything contained in
sub-section (1) no statement referred to in the said sub-section 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 prescribed form and shall contain an
up-to-date account of the transaction with the debtor. (4)
The money-lender shall on or before
the date prescribed under sub-section (2) deliver or cause to be delivered a
copy of the statement referred to in sub-section (1) to the prescribed
authority. (5)
Every money-lender shall send a notice
of having advanced any loan to a member of a Scheduled Tribes within thirty
days of the date of advance of the loan to the Inspector appointed under
Regulation 16. He shall also send a statement to the Inspector in respect of
the loans advanced to such a member prior to the commencement of these
Regulations within sixty days of such commencement. (6)
In respect of any particular loan
whether advanced before or after the date on which these Regulations come into
force, the money-lender shall on demand in writing being made by the debtor at
any time during the period when the loan or any part thereof has not been
repaid, and on payment of the prescribed fee, supply to the debtor, or if the
debtor so requires to any person specified in that behalf in the demand, (i)
a statement signed by the money-lender
or his agent and containing the particulars specified in sub-section (1); or (ii)
a copy of any document relating to the
loan made by his or any surety therefore. A
debtor to whom a statement of amounts or a passbook has been furnished under
Section 10 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. Notwithstanding
anything contained in any law for the time being in force, in any suit to which
these Regulations apply: (a)
A Court shall, before deciding the
claim on merits, frame and decide the issue whether the money-lender has
complied with the provisions of Sections 8, 9 and 10. (b)
If the Court finds that the provisions
of Sections 8, 9 and 10 has not been complied with by the money-lender, it may,
if the plaintiff'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.-
For purpose of this section, a money-lender who has given the receipt or
furnished a statement of accounts or a pass-book in the prescribed form and
manner, shall be held to have complied with the provisions of Sections 8, 9 or
10, as the case may be, in spite of any errors and omissions, if the Court
finds that such errors and omissions are not material or not made fraudulently. Notwithstanding
anything contained in the Code of Civil Procedure, 1908 (V of 1908), the Court
may, at any time, on application of a 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 these Regulations came into force, in respect
of a loan, shall be paid in such number of instalments, on such dates and
subject to such conditions as having regard to the circumstances of the
judgement-debtor and the amount of the decree it considers fit. (1)
Notwithstanding anything contained in
any agreement or any law for the time being in force, no Court shall, in
respect of any loan whether advanced before or after the date on which these
Regulations come into force decree on account of arrears of interest, a sum
greater than the principal of the loan due on the date of the decree. (2)
If the Court is of opinion that the
amount of interest of principal has been recovered by the creditor in excess of
those permissible under these Regulations, it may order to refund of excess
amount of interest or principal as the case may be. (1)
No person shall be employed by any
money-lender for the purpose of demanding or recovering any loan due to him
unless such person is in possession of a certificate authorising him to act as
a debt collector granted under this section. (2)
The certificate to be granted under
sub-section (1) shall be in such form and for such period, shall contain such
particulars, and shall be granted by such authority as may be prescribed. (1)
The State Government or any officer
empowered by it not below the rank of a Collector may, by notification, appoint
one or more persons to be Inspectors for the purpose of these Regulations and
may specify in such notification the local limits of their jurisdiction. (2)
Every Inspector shall be deemed to be
a public servant with in the meaning of Section 21 of the Indian Penal Code,
1860 (Central Act XLV of 1860). (1)
A Revenue Officer not below the rank
of a Deputy Collector on receiving a report from an Inspector that he has reason
to believe that a person is carrying on a licence the business of money lending
at any place with in the jurisdiction of Revenue Officer may issue a warrant
empowering the Inspector to enter such place with such assistance as such
Revenue Officer considers necessary and to inspect the books, accounts,
records, files, documents, safe-vaults and pledges in such premises. (2)
On an inspection made under
sub-section (1) the Inspector may take to his office for further investigation
such books, accounts, records, files and documents as he considers necessary. (3)
If the Inspector removes from the
premises any books, accounts, records, files and documents he shall give to the
persons in charge of the place from whose custody they were removed, a receipt
describing the books, accounts, records, files and documents as removed by him. (4)
The Inspector shall within twenty-four
hours of the removal of the books, accounts, records, files and documents from
the premises, either return them to the person from whose custody they were
removed or produce them before the Revenue Officer who issued the warrant. Such
Revenue Officer may return the books, accounts, records, files and documents,
or any of them to the person from whose custody they were removed by the
Inspector, after taking from such person such security as the Revenue Officer
considers necessary for the production of the books, accounts, records, files
and documents when required either by the Inspector or by the Court, or may
pass such other orders as to their disposal as may appear just or necessary: Provided
that where the books, accounts, records, files and documents so removed are
produced before the Revenue Officer under this clause, the time reasonably
necessary for the journey from the place of seizure to the said Revenue Officer
shall be excluded for the purpose of computing the period of twenty four hours. (5)
An Inspector shall have authority to
require any person whose testimony he may require regarding any loan or any
money-lending business, to appear before him or to produce or cause to be
produced any document in his possession or control and to examine such person. (6)
An Inspector may apply for assistance
to an officer in charge of a Police Station and take police aid in performing
his duties under these Regulations. (1)
Any money-lender, whether licensed or
not, (a)
who actually advances an amount less
than the amount shown in his accounts, registers, pawn-tickets or other
documents relating to the loan; or (b)
who receives interest or other charges
at a rate higher than the rate shown in the accounts, registers, pawn-tickets
or other documents; or (c)
who renews loan in contravention of
sub-section (7) of Section 8 shall be punishable with imprisonment for a term
which may extend to one year or with fine which may extend to two thousand
rupees or with both. (2)
If a money-lender is convicted of an
offence under sub-section (1) after having been previously convicted of such an
offence, the Court convicting him on the subsequent occasion may cancel his
licence as a money-lender: Provided
that such cancellation shall not affect the right of a money-lender to realise
loans advanced by him in accordance with the provisions of these Regulations
prior to the cancellation of his licence. No
Court shall take cognizance of an offence punishable under these Regulations or
the rule made thereunder except on a complaint in writing made by the Inspector
appointed under Section 16 or such other officer or authority as may be
prescribed. (1)
Whoever molests or abets the
molestation of any debtor for the recovery of any loan shall be punishable with
imprisonment for a term which may extend to one year or with fine which may
extend to two thousand rupees or with both. Explanation.
For the purpose of this Section a person, who with intend to cause another
person to abstain from doing or to do any act which he has a right to do or to
abstain from doing:-- (a)
obstructs or uses violence to or
intimidates, such other person; or (b)
persistently follows such other person
from place to place or interferes with any property owned or used by him or
deprive him of or hinders him in, the use thereof; or (c)
loiters or does any similar act or
near a house or other place where such other person resides, or works or
carries on business or happens to be, shall be deemed to molest such other
person: Provided
that a person who attends at or near such house or place for the purpose only
of making a formal demand for payment of a loan due or of obtaining or
communicating information shall not amount to molest such other person. (2)
Notwithstanding anything contained in
the Code of Criminal Procedure, 1898 (Central Act V of 1898)1 an
offence under this section shall be cognizable and bailable. (1)
The licensing authority may at any
time, during the term of any licence, by an order in writing, suspend it for
such period as it may deem fit or cancel it- (a)
if the licensee carries on the
business in contravention of the provisions of these Regulations or the rules
made thereunder or of the conditions of the licence; or (b)
if any reason for which the licensing
authority could have refused to grant the licence to the money-lender under
sub-section (3) of Section 4 is brought to the notice of that authority after
the grant of the licence; or (c)
if the licensee is convicted by a
Criminal Court for an offence involving moral turpitude; or (d)
if the licensee maintains false
accounts; or (e)
if the licensee obstructs or wilfully
refuses facilities to an Inspector appoint under Section 16 or other authority
appointed under these regulations in the performance of his or its duties under
these regulations or the rules made thereunder. (2)
Before suspending or cancelling a
licence under sub-section (1), the licensing authority shall give the licensee
a notice in writing stating the grounds on which it is proposed to take action
and requiring him to show cause against it within such time as may be specified
in the notice. (3)
Any person aggrieved by an order of
the licensing authority suspending or cancelling a licence may, within one
month of the date of communication of such order to him, appeal to the
prescribed authority. Every
order of suspension or cancellation of a licence under these regulations shall
be notified in the Gazette and at the police station having jurisdiction over
the area to which the licence relates and also on the notice board of the
office of the licensing authority. A
person whose licence is suspended or cancelled under Section 21 shall not be
entitled to any compensation in respect of such suspension or cancellation or
to the refund of any fee paid in respect of such licence. Whoever
carries on the business of money-lending without a licence or otherwise than in
conformity with the terms and conditions of a licence shall be punishable with
imprisonment for a term which may extend to six months or with fine which may
extend to one thousand rupees or with both. (1)
Whoever contravenes any of the
provisions of these Regulations or any rule made thereunder or of any terms or
conditions of a licence granted thereunder or makes a claim or a statement or
furnishes a declaration which is false or which he does not believe to be true
shall, if no other penalty is elsewhere provided for in these Regulations for
such contravention, be punishable with imprisonment for a term which may extend
to one year or with fine which may extend to one thousand and five hundred
rupees or with both. Explanation.-
The suspension or cancellation of a licence under Section 21 shall not be deemed
to be a penalty for the purpose of this sub-section. (2)
Where a contravention of any of the
provisions of these Regulations or of any rule made thereunder of which a
person is convicted consists of a mere omission to do a thing, the Court may,
while convicting the offender, direct him to do the thing before an appointed
day and may on failure of the offender to do the thing before the said day,
pass an order suspending or cancelling his licence. No
Court inferior to that of a Magistrate of the First Class shall try any offence
punishable under these Regulations. Notwithstanding
anything contained in any contract or document or in any other law for the time
being in force every mortgage of agricultural land with possession existing on
the date of commencement of these Regulations and held from a debtor by a
money-lender who is not a member of a Scheduled Tribe shall, to the extent of
the amount secured on such land, be deemed to have been substituted by a simple
mortgage and the mortgagee shall forthwith redeliver possession of the
mortgaged land to the debtor. (1)
The State Government may, after
previous publication, make rules to carry out the purposes of these
Regulations. (2)
In particular and without prejudice to
the generality of the foregoing powers such rules may provide for all or any of
the following matters, namely. (a)
the form of, and the particulars to be
contained in an application for a licence and the authority to whom such
application shall be made under clause (a) of sub-section (1) of Section 4; (b)
the manner in which the licence fee
payable under clause (b) of sub-section (1) of Section 4 shall be paid; (c)
the form of the licence, and the terms
and conditions subject to which it may be granted under sub-section (2) of
Section 4; (d)
the other authority required to be
prescribed under sub-section (4) of Section 4; (e)
The authority of whom the appeal shall
be under sub-section (3) of Section 4; (f)
the charges which may be demanded by a
money-lender under sub-section (2) of Section 7; (g)
the form and the manner in which
books, accounts and documents specified in these Regulations shall be
maintained, kept or used; (h)
the form in which and the date before
which the statement shall be supplied under sub-section (2) of Regulation 10; (i)
the authority to whom the statement
shall be delivered under sub-section (4) of Section 10; (j)
the authority to whom an application
shall be made for the grant of certificate under sub-section (2) of Section 15; (k)
the form in which and the period for
which the certificate referred to in sub-section (2) of Section 15 may be
granted and particulars which such certificate shall contain; (l)
the procedure which shall be followed
and the powers which may be exercised, by the authorities exercising functions,
holding enquiries and hearing appeals under these Regulations; (m)
any other matter which is to be or may
be prescribed, under these Regulations. The
Madhya Pradesh Anusuchit Janjati Sahukar Viniyam, 1969, is hereby repealed. [1]
Received the assent of the
President on the 19th October, 1972; Assent first published in Madhya Pradesh
Gazette, Extraordinary, dated the 10th November, 1972, pp 2800-2809.THE MADHYA PRADESH
ANUSUCHIT JANJATI SAHUKAR VINIYAM, 1972
PREAMBLE
Section 2 – Definitions.
Section 29 – Repeal.