Andhra Pradesh Money Lenders Act, 2000

[Act No. 26 of 2000]

Preamble

A Bill to consolidate the Laws Relating to Money-lending in the State of Andhra Pradesh and for matters connected therewith or incidental thereto.

Whereas It is expedient to provide for the regulation and control of the business of money-lending in the State of Andhra Pradesh;

BE it enacted by the Legislative Assembly of the State of Andhra Pradesh in the Fifty First year of the Republic of India as follows.-

Section 1 - Short title, extent and commencement

(1) This Act may be called the Andhra Pradesh Money Lenders Act, 20001.

(2) It extends to the whole of the State of Andhra Pradesh.

(3) It shall come into force on such date and in such areas as the Government may, by notification, appoint and they may appoint different dates for different areas.

Footnote:

  1. A.P. Gazette, Part-IV-A, (Ext.), dated 18-8-2000.

Section 2 - Definitions

In this Act, unless the context otherwise requires,-

(1) "Appellate authority" means any officer or authority appointed by the Government to exercise the powers of an appellate authority under this Act:

(2) "Bank" means,-

(a) a Banking Company as defined in Section 5 of the Banking Regulation Act, 1949:

(b) the State Bank of India constituted under the State Bank of India Act, 1955:

(c) a subsidiary Bank as defined in clause (k) of Section 2 of the State Bank of India (Subsidiary Banks) Act, 1959;

(d) the Industrial Development Bank of India established under the Industrial Development Bank of India Act, 1964;

(e) a corresponding new bank constituted under Section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970;

(f) a Regional Rural Bank established under Regional Rural Banks Act, 1976;

(g) a corresponding new bank constituted under Section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980;

(h) the Export Import Bank -of India established under The Export Import Bank of India Act, 1981.

(i) The National Bank for Agriculture and Rural Development established under The National Bank for Agriculture and Rural Development Act, 1981; and

(j) the Industrial Reconstruction Bank of India established under the Industrial Reconstruction Bank of India Act, 1984;

(3) "Co-operative Society" means a society registered or deemed to have been registered under the Andhra Pradesh. Co-operative Societies Act, 1964 or the Andhra Pradesh Mutually Aided Co-operative Societies Act, 1995.

(4) "Government" means the State Government of Andhra Pradesh;

(5) "Interest" does not include any sum lawfully charged in accordance with the provisions of this Act by a Money Lender for or on account of costs, charges or expenses, but save as aforesaid, includes any amount 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;

(6) "licence" means a money-lender's licence granted under Section 4;

(7) "Licensing authority" means an officer or authority appointed by the Government to perform the functions of a licensing authority under this Act;

(8) "loan" means an advance whether of money or in kind at 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 Government, Post Office Savings Bank or in a bank, or in a company as defined in the Companies Act, 1956 or with a co-operative society;

(b) an advance made to any loan floated by the Government of India or the Government of any State;

(c) an advance made by a bank or a co-operative society or an advance made from a Provident fund to which the Provident Funds Act, 1925 applies;

(d) an advance made by the Government or by any person authorised by the Government to make advances on their behalf, or by any local authority;

(e) an advance made by any authority specified by the Government by notification;

(f) an advance made by a trader bona fide carrying on any business, other than money-lending, if such loan is advanced in the regular course of such business;

(g) an advance made to its members by any Nidhi or permanent Fund registered under any Chit fund scheme or chit;

(9) "member of weaker sections" means any individual whose total income from all sources put together does not exceed rupees eleven thousand per annum;

(10) "Money Lender" means a person whose main or subsidiary occupation is the business of advancing and realising loans or acceptance of deposits in the course of such business and includes any person appointed by him to be in-charge of a branch office or branch offices or a liaison office or any other office by whatever name called, of his principal place of business but does not include,--

(a) a bank a Co-operative Society;

(b) the Life Insurance Corporation of India established under Section 3 of the Life Insurance Corporation Act, 1956;

(c) The Industrial Credit and Investment Corporation of India Limited incorporated under the Indian Companies Act, 1913.

(d) the Industrial Finance Corporation established under Section 3 of the Industrial Finance Corporation Act, 1948:

(e) the State Financial Corporation established under Section 3 of the State Financial Corporations Act, 1951:

(f) any institution established by or under an Act of Parliament or the Legislature of a State, which grants any loan or advance in pursuance of the provisions of that Act, or

(g) any other institution in the public sector, whether incorporated or not exempted by the Government by notification:

Explanation I.--

:Where a person who carries on in the State of Andhra Pradesh the business of advancing and realising loans is resident outside the State, the agent of such person resident in the State shall be deemed to be the money-lender in respect of that business for the purposes of this Act.

Explanation II.--

For the purposes of this Clause, Clause (11), proviso to sub-section (1) of Section 3, and Section 22 the word "person" shall include "a firm or a joint family".

(11) a person shall be deemed to 'molest' the debtor if, intend to make the debtor abstain from doing any act which he has a right to do, or to do any act which he has a right to abstain from doing, in order to compel payment of the amount due, he,-

(a) obstructs or uses violence to or intimidates the debtor, or persistently follows the debtor from place to place or interferes with any property owned or used by him or deprives him of, or hinders him in the use of any such property;

(b) loiters at or near a house or other place which the debtor visits or where he resides, works or carries on business:

(c) does any act calculated to annoy or intimidate the members of the family of the debtor, or

(d) moves, or acts in a manner which causes or is likely to cause alarm or danger to the person or property of the debtor:

(12) "Notification" means a notification published in the Andhra Pradesh Gazette, and the word "notified" shall be construed accordingly:

(13) "Prescribed" means prescribed by rules made under this Act;

(14) "Principal" in relation to a loan means the amount actually lent to the debtor.

(15) "year" means the financial year.

Section 3 - Money Lender to obtain Licence

(1) No person shall commence or carry on or continue business as a money-lender at any place to which this Act applies without a licence obtained under this Act or in contravention of the terms thereof;

Provided that nothing in this section shall be deemed to prohibit a Licencee under the Andhra Pradesh (Telangana area) Money Lenders Act, 1349-F. who has applied for a licence within three months from the commencement of this Act to carry on or to continue business as a money-lender pending orders on his application.

(2) Where a money-lender has more than one shop or place of business, whether in the same town or village or in different towns of villages, he shall obtain a separate licence in respect of each such shop or place of business.

(3) (a) Where a money-lender is a registered firm, the licence shall be obtained in the firm's name;

(b) Where a money-lender is an undivided joint family, the licence shall be obtained in the name of the manager or the Kartha, as the case may be described as such in the licence;

(c) Where a money-lender is any other association of individuals, not required to be registered under the Indian Companies Act, 1956, a separate licence shall be obtained by each such individual in his name describing himself as a member of the association;

Provided that nothing contained in this sub-section shall affect the operation of Section 69 of the Partnership Act, 1932.

Section 4 - Granting and refusal of licence

(1) Every application for a money lender's licence shall be in writing and shall be made to the Licensing Authority in such manner and accompanied by such licence fee as may be prescribed.

(2) Every licence shall be granted in such form and subject to such conditions as may be prescribed and on payment of security deposit as provided in sub-section (3), which shall be accepted only in accordance with the provisions of the Reserve Bank of India, Act, 1934, and at such rates of interest not exceeding the rates fixed by the Reserve Bank of India under the Non-Banking Financial Companies (Reserve Bank) Directions, 1977.

(3) Every licencee specified in column (1) of the Table below shall, within such time and in such manner as may be prescribed, deposit in the Government Treasury in respect of each licence held by him, the amount specified in the corresponding entry in column (2) of the said Table, by way of security for the due observance of the conditions of the licence.

Explanation.-

For the removal of doubts, it is hereby declared that a money-lender whose principal place of business is situated outside the State of Andhra Pradesh and who has within the State of Andhra Pradesh a branch office or branch offices or a liaison office or any other office by whatever name called, of his principal...

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