MAHARASHTRA
MONEY-LENDING (REGULATION) RULES, 2014
PREAMBLE
In exercise
of the powers conferred by sub-sections (1) and (2) of section 54 of the
Maharashtra Money-Lending (Regulation) Act, 2014 (Mah. VII of 2014), and of all
other powers enabling it in that behalf, the Government of Maharashtra, is
hereby pleased to make the following rules to carry out the purposes of the
said Act, as follows, namely:
Rule - 1. Short Title.
These rules may be called the
Maharashtra Money-Lending (Regulation) Rules, 2014
Rule - 2. Definitions.
In these rules, unless there is
anything repugnant in the subject or context
(a)
"Act" means The Maharashtra
Money-Lending (Regulation) Act, 2014,
(b)
"Form" means a Form appended to these
rules, and
(c)
"Section" means a section of the
Act.
Rule - 3. Application for licence.
(1)
A money lender desiring to carry on the
business of money lending in any area shall make an application under section 5
of the Act in Form No. 1 to the concerned Assistant Registrar having
jurisdiction over the area. The application shall be delivered at the office of
the Assistant Registrar during office hours either personally by the applicant
or through an agent authorized in writing in this behalf or sent by registered
post addressed to the Assistant Registrar. An application may also be submitted
online if such facility is made available.
(2)
An application for the grant of a licence for
the first time may be made on or before 31st of December and an application for
renewal of licence may be made on any date within three months prior to the
expiry of the licence.
(3)
No application for renewal of licence shall
be received by the Assistant Registrar from expiry of sixty days period of the
said licence:
Provided that, if applicant for a
fresh licence, in such case, the same shall not be accepted, unless he
satisfies the Assistant Registrar, that he had not carried out any transaction
or business of money lending during the period when licence was not renewed.
Rule - 4. Register of money lenders.
The register of Money-Lenders required
to be maintained under section 7 shall be in Form No. 2.
Rule - 5. Display of list of licenced money lenders.
Every Assistant Registrar shall
display on a notice board in his office a list of money lenders licenced to
carry on the business of money lending in the area under his jurisdiction. The
Assistant Registrar shall also make this list available to the Gram Panchayat
in the Schedule areas. The list shall contain the addresses and licence number
of the money lenders. Such list shall also be published on the official website
of the Registrar of Co-operative Societies.
Rule - 6. Change in partnership or management.
If during the currency of a licence a
new partner is admitted to partnership or a person is appointed as responsible
for the management of the business of money lending, the money lender shall,
within fifteen days, communicate to the District Registrar the name of the
partner so admitted or of the person so appointed, and shall satisfy the
District Registrar that the new partner or the person appointed is not himself
disqualified from holding a licence on any of the grounds mentioned in section
8.
Rule - 7. Change of address.
A money lender shall communicate any
change in his address giving full details of the new address within seven days
of such change to the District Registrar and Assistant Registrar.
Rule - 8. Procedure for summary inquiry under section 6.
On the receipt of an application for
the grant or renewal of a licence, the Assistant Registrar shall make a summary
inquiry under section 6 by examining the applicant or person responsible for
the management of the business of money-lending or such other persons as he may
deem fit, by calling such information from the applicant as he considers
necessary and by inspecting or causing to be inspected such accounts and
documents as he may deem fit in order to satisfy himself about the bonafides,
and conduct of the applicant. If from the examination made or information
supplied, the Assistant Registrar is not so satisfied, he may take further
steps to satisfy himself. The Assistant Registrar shall maintain a record of
such inquiry and shall sign below the same. The record shall contain a brief
memorandum of the substance of evidence taken and a summary or the conclusions
regarding the facts elicited during the inquiry.
Rule - 9. Form of licence and conditions thereof.
The licence under section 6 shall be
in Form No. 3.
Rule - 10. The licence fees and manner of payment.
(i)
Every application shall be accompanied by
licence fee of five hundred rupees. And if, application for renewal of licence
is made after the expiry of licence as provided in rule 5; shall be accompanied
by licence fee of one thousand rupees.
(ii)
The licence fee shall be paid by crediting it
to Government account in treasury, sub-treasury, and forwarding the
challan/document to the Assistant Registrar along with the application.
Rule - 11. Levy of inspection fees.
(1)
On the receipt of an application for the
renewal of a licence, the Assistant Registrar to whom the application has been
made, shall call upon the applicant to produce his accounts for inspection. He
shall then assess the inspection fee payable under section 12 in respect of
inspection of books of accounts and call upon the applicant to pay the
inspection fee in the manner prescribed in Rule 10. The inspection fee shall be
paid within ten days of the receipt of the order in this behalf by the
applicant or within such further period not exceeding thirty days in the
aggregate of the receipt of the order as the District Registrar may grant in
that behalf.
(2)
The District Registrar may suo motu or on an
application made in that behalf revise the order of assessment made under
sub-rule (1) if he thinks fit.
Rule - 12. Reasons for refusing or cancelling a licence to be communicated to applicant.
If a Registrar refuses to grant or
cancel a licence, he shall communicate the same to the applicant in writing,
along with the reasons therefore.
Rule - 13. Appeal against order of the Registrar refusing or cancelling a licence.
(1)
An appeal under sub-section (3) of section 8
or 11 against order of a Registrar refusing to grant or cancelling a licence
shall be instituted within 3 months from the date on which the order of refusal
or cancellation is communicated to the money-lender. Such appeal should be
accompanied by a certified copy of the order appealed against and shall contain
in brief the grounds of the appeal.
(2)
The Divisional Registrar shall decide the
appeal after hearing the appellant or his pleader, as the case may be.
Rule - 14. Display of licences.
Every money-lender shall exhibit his
licence 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 (i) the name in which the business of money lending is carried on, and
(ii) the number of his license, (iii) area of licence, (iv) validity of
licence:
Provided that the Registrar General,
Divisional Registrar or the District Registrar of money lenders may subject to
the general or special order of the State Government, exempt any moneylender
from the operation of all or any of the provisions of this rule.
Rule - 15. Issue of duplicate licence.
(i)
When a licence granted to a money-lender is
lost, destroyed or torn or otherwise defaced in such a manner as to render it
illegible, the money lender may make an application to the District Registrar
for the grant of a duplicate licence.
(ii)
Where duplicate licence is required on the
ground that the original licence is torn or defaced, the money lender shall
surrender the original licence to the District Registrar along with the
application made under sub-rule (i).
(iii)
An application under sub-rule (i) shall be
accompanied by a fee of rupees three hundred, which shall be paid in the manner
as provided in rule 10.
(iv)
On receipt of such application, if the
District Registrar after making such inquiry as may be deemed necessary is
satisfied that a duplicate licence may be issued to the money lender after
recording it in his office records he shall issue a duplicate licence and
direct the Assistant Registrar to make a note of the issue of such a duplicate
licence to the money lender against his name in the register.
(v)
The duplicate licence so issued shall bear on
its face the number and date of original licence and shall also bear the word
"Duplicate".
Rule - 16. Publication of notice inviting claims to pledged property.
Where the property pledged by a debtor
to the money-lender is taken in his custody by the District Registrar under
section 17 and the debtor or his known heirs cannot be traced, the Registrar
shall within ninety days from the date on which the property has come into
custody, publish a notice in Form No. 4, for two consecutive days in at least
two daily newspapers one of which shall be in Marathi and published at local
level, in circulation within the jurisdiction of the District Registrar
inviting claims to the said property.
Rule - 17. Procedure for the Return of Immovable property acquired or usurped in course of money-lending.
(1)
The proceeding for return of the immovable
property and restoration of possession, shall commence by an application for
cancellation and declaration of any instrument or conveyance as invalid, on the
ground that, an instrument or conveyance entered into between the applicant and
the opponent is a security for the loan advanced by the opponent to applicant
in the course of money lending, to be presented to the District Registrar of
money lender of concerned District in which immovable property is situated.
Such Application shall be either verified or shall be supported with an
affidavit.
(2)
(a) The Application shall be affixed with
court fee stamp of Rs. 100 and shall be accompanied with the relevant and
necessary instrument, document on which the Applicant relies and evidence if
any to prove his claim.
(b) The Application shall contain the
following particulars.
(i)
The name, age, occupation of the Applicant,
(ii)
The name, age, occupation of the Opponent,
(iii)
The date on which the cause of action arose,
(iv)
The particulars as to the nature of the
transaction and relief sought,
(v)
List of documents and witnesses if any on
which the Applicant relies and wants to examine at the time of inquiry.
(3)
Where the application does not contain the
particulars as above and as required as per section 18, the District Registrar
or the person authorized by him shall forthwith ascertain from the applicant
such of the particulars necessary to decide the application and shall reduce
them to writing in the form of endorsement or an annexure to the application
which shall be deemed to be a part of the application.
The District Registrar shall not
reject any such application on any trivial grounds.
(4)
On receipt of such application the District
Registrar shall examine the application and enter or cause it to be entered in
the register kept for that purpose in Form No. 5.
(5)
The District Registrar may enquire the said
application himself or through an officer appointed by him for that purpose to
ascertain the nature of the transaction mentioned in the application.
(6)
On admission of the application the District
Registrar shall fix a convenient day and place for inquiry or trial of the
application and shall issue a notice to the opponent. The opponent shall be
entitled to file his reply to the application and the District Registrar shall
give him an opportunity to file reply to the application. However, in no case
an adjournment for more than one month would be granted to file the reply and
the documents on which the opponent relies.
(7)
The District Registrar or the inquiry officer
may frame the issues for his decision on any day on which the inquiry has been
fixed for evidence.
(8)
The District Registrar may proceed ex-parte
if the opponent does not appear or file his reply within the stipulated period
and shall then require the applicant to appear with his documents and
witnesses, if any, on the day and place fixed for that purpose.
(9)
The District Registrar or the inquiry officer
shall have all the powers of the civil court for the purposes of enforcing the
attendance of any person and to examine him on oath to ascertain the nature of
the transaction. In the event of requirement of any additional document or
record by the District Registrar or the inquiry officer, he may proceed, if so
required as per section 16.
(10)
The District Registrar or the inquiry officer
may examine the applicant or such other person as he may deem fit which he
considers necessary by inspecting the documents in order to ascertain the real
nature of the transaction.
(11)
The District Registrar or the inquiry
officer, for reasons to be recorded in writing, may adjourn the inquiry for
such time as he thinks fit but not ordinarily exceeding 7 days.
(12)
The District Registrar or the inquiry officer
appointed by him shall have power, at any stage of the proceedings, to add name
of any person to whom the possession for enjoyment of property or use claimed,
may have been transferred or the addition of whom as a party appears necessary
in order to enable him to effectually and completely decide the issue involved
in section 18, be added as applicant or opponent as the circumstances of the
case may require.
(13)
Procedure in case of death of person in the
proceedings.
In case of death of any person while
inquiry is pending.
(i)
if the application is made by either of
parties in the proceedings, the District Registrar or the inquiry officer shall
summarily determine as to who is the legal representative of the deceased
person and shall enter on record the name of such representative.
(ii)
Where the District Registrar or the inquiry
officer orders to enter the name on record of any person as a legal
representative of the deceased opponent, he shall issue a notice to such legal
representative and the inquiry shall proceed on the date fixed in such notice.
(14)
(i) On the day fixed or any other day to
which the proceeding of inquiry has been adjourned, the District Registrar or
the inquiry officer shall proceed to hear all the evidence brought before him
and decide the point as to the nature of the transaction as per sub-section (1)
of 18.
(ii) In case the inquiry is conducted
by inquiry officer appointed by District Registrar, he shall submit his report
to District Registrar within the period fixed by District Registrar, in any
case not later than sixty days from the conclusion of inquiry by him. The
District Registrar may extend this period for reasons to be recorded in writing
by another period of thirty days.
(iii) In case the District Registrar
himself has conducted the inquiry or after the receipt of inquiry report of
inquiry officer, shall peruse and scrutinize the report and thereafter if he is
satisfied that the immovable property has come into the possession of money
lender as a security for loan advanced by the money lender during the course of
money lending, shall issue a notice as required under sub-section (3) of
section 18, within 15 days from the date of receipt of inquiry report or his
conclusion before passing any order under sub-section (2) of section 18 and
shall not pass any order under sub-section (2) of section 18 unless a further
opportunity of being heard, is given to the person concerned to state his
objections if any on the finding. Such opportunity of being heard may also
include personal hearing if he so desires.
(iv) the person concerned may state
his objections if any within 15 days from the date of receipt of aforesaid
notice. The District Registrar thereafter may fix the date for personal hearing
as per sub-section (3) of section 18.
(15)
The District Registrar or inquiry officer as
the case may be shall maintain a roznama of each date of the inquiry
proceedings under section 18 and maintain the same during the course of
inquiry. He shall also sign a memorandum of substance of evidence of each
witness as the examination of witness proceeds. He shall briefly record his
reasons for his findings under subsections (1) and (2) of section 18.
(16)
The District Registrar shall pass an order
either declaring the instrument or conveyance as invalid and may order
restoration of possession of property to the debtor who has executed the
instrument or conveyance as the case may be or reject the application within a
period of thirty days from the conclusion of the proceedings by recording his
reasons therefore in writing.
(17)
Where the District Registrar gives a decision
or passes an order declaring the instrument or conveyance as invalid and orders
restoration of possession of property to the debtor under subsection (2) of
section 18, an effect shall be given by revenue officer entrusted with the work
of maintenance of land record under Maharashtra Land Revenue Code or any other
law for the time being in force and such order under sub-section (2) of section
18 shall be executed in the same manner as if a decree passed by the Civil
Court.
(18)
Any person agreed by the order mentioned in
sub-rule 17, may prefer an appeal to the Divisional Registrar within thirty
days from the date of order.
Rule - 18. Forms of cash book, ledger and of statement and receipt under section 24.
The cash book and ledger to be
maintained by a money lender under sub-section (1) of section 24 shall be
either in Form Nos. 6 and 9 respectively or in Form Nos. 7 and 8 respectively.
The statement under the proviso to clause (a) of sub-section (2) of section 24
shall be in Form No. 10. The receipts under sub-sections (4) and (5) of section
24 shall be in Form Nos. 11 and 12 respectively.
Rule - 19. Capital Account.
Every money lender shall open a
capital account in Form No. 13 for the purposes of section 12.
Rule - 20. Annual statement of accounts to be delivered by money lender to debtor etc. under section 25 (1).
(1)
The annual statement of accounts to be
delivered by a money lender to each of his debtors under sub-section (1) of
section 25 shall be in Form No. 14.
(2)
The statement shall be furnished to each of
the debtor within forty-five days after close of the year for which the
accounts of the money lender are ordinarily maintained:
Provided that the Registrar may, on
the application of the money lender extend such period in the aggregate to not
more than sixty days after the close of such year, if the money lender proves
to the satisfaction of the Registrar that he was unable to furnish the
statements for some reasonable cause and that not less than two thirds of the
total number of statements will be furnished within the said forty-five days.
(3)
The fee to be paid by a debtor to a money
lender for supplying a statement of accounts under sub-section (2) of section
25 shall be five rupees.
(4)
The expenses to be recovered from a debtor
for supplying copies of documents by a money lender under sub-section (3) of
section 25 shall be two rupees per page.
Rule - 21. Fees for supply of statements or pass books.
(1)
The rate of fees recoverable under subsection
(2) of section 26 shall be:
(a)
Two rupees for each page supplied under
sub-section (2) of section 24 and sub-section (1) of section 25; and
(b)
Two rupees for each pass book containing not
less than eight pages excluding cover pages supplied under sub-section (2) of
section 24 and sub-section (1) of section 25.
(2)
The amount on account of such fees shall be
shown separately in debtor's account.
Rule - 22. Form of pass book.
The pass book mentioned in sections 24
and 25 shall be either in Form No. 15 or in Form No. 16.
Rule - 23. 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 33, shall be in the Form Nos. 17, 18 and 19
respectively.
Rule - 24. Form of application under section 36.
The application to be made by a debtor
under subsection (1) of section 36 shall be in Form No. 20 and shall be
accompanied by a court fee of ten rupees.
Rule - 25. Copies of documents on payments of fees.
(1)
Any party to any application, inquiry, or
appeal under the Act before the Assistant Registrar, District Registrar,
Divisional Registrar, or Registrar General, or any person who is interested in
such application, inquiry or appeal may apply to the Assistant Registrar,
District Registrar, Divisional Registrar, or Registrar General, as the case may
be, for a copy of any document in the record of such application, inquiry or
appeal.
(2)
The application shall be accompanied by
deposit of an amount two rupees per copy.
When the description of the document
given in the application is incorrect or deficient, and it shall in consequence
be necessary for the record keeper to search his records in order to find it, a
fee at the rate of ten rupee for each year, of which the records are searched,
shall be payable by the applicant for such search, whether the document be
found or not and whether the copy for which he applies, on examination of the said
document, be granted or not.
(3)
The amount calculated according to the above
scale shall be retained by the Assistant Registrar, District Registrar,
Divisional Registrar or Registrar General to whom the application for grant of
copies is made, as copying fees and the surplus amount, if any, deposited by
the person applying for copies shall be refunded to him at the time of
supplying the copy:
Provided that, the person applying for
copies shall, if the amount deposited by him is not sufficient to cover copying
fees, pay the deficit before taking delivery of the copy.
Rule - 26. Forms of summons.
The summons to be issued for enforcing
the attendance of any person under section 15 in connection with an inquiry
under section 6 shall be in Form Nos. 21 or 22 as the case may be.