[Act No. 16 of 2020] [25th September, 2020] An Act further to amend the Madhya Pradesh
Moneylenders Act, 1934. Be it
enacted by the Madhya Pradesh Legislature in the seventy first year of the Republic
of India as follows:-- This
Act may be called the Madhya Pradesh Moneylenders (Amendment)) Act, 2020. In
Section 2 of the Madhya Pradesh Moneylenders Act, 1934 (No. 13 of 1934)
(hereinafter referred to as the principal Act), in clause (vii), after
sub-clause (d), the following sub-clause shall be inserted, namely:-- "(da) a loan advanced by a "non-banking
financial company" as defined in Section 45-I(f) of the Reserve Bank of
India Act, 1934, (No. 2 of 1934),". After
Section 2-A of the principal Act, the following section shall be inserted,
namely:-- "2-B. Limit of interest.-- No
moneylender shall charge interest more than the rate notified by the State Government
from time to time.". Section
11-FF of the principal Act shall be renumbered as Section 11-FFF and before
Section 11-FFF as so renumbered, the following new section shall be inserted,
namely:-- "11-FF. Loan by unregistered moneylenders shall not
be recoverable in certain conditions.-- Notwithstanding
anything contained in any other law for the time being in force, any loan
advanced to any person by a moneylender not registered under section 11-B shall
not be recoverable in any court of law unless at the time of filing the suit
the moneylender held an effective registration and the court is satisfied that
the loans advanced were in compliance with Section 2-B.". In
Section 11-FFF as so renumbered of the principal Act, in marginal heading and
in provision, for the word, figure and letter "section 2-A" wherever
they occur, the words, the figures and letters "section 2-A, section 2-B"
shall be substituted.THE MADHYA PRADESH MONEYLENDERS
(AMENDMENT) ACT, 2020
PREAMBLE