Act Description : ANDHRA PRADESH (TELANGANA AREA) MONEY LENDERS ACT,

1349
Act Details :

ANDHRA PRADESH (TELANGANA AREA) MONEY

LENDERS ACT, 1349

5 of 1349

Preamble:- Whereas it is expedient to regulate the transactions of money

lending and to make better provisions for its control; It is hereby enacted
as follows:

Section 1 Short title, extent and commencement

(1) This Act may be called the Andhra Pradesh (Telangana Area) Money
Lenders Act, 1349F. and shall into force in the whole of the Telangana
area of the State of Andhra Pradesh from the date of its publication in the
Official Gazette, and from the said date the Agricultural Debtors Relief and
Prevention of Usury Regulation, 1341 F, and the Money Lenders
Regulation, 1347 Fasli shall be repealed.

(2) The form prepared, money lender s name registered, licence issued or
anything done under the Money Lenders Regulation, 1347 F. till the
commencement of this Act, shall be deemed to have been prepared,
issued, registered and done under this Act; and this Act shall apply to
them in the same manner as if they had been prepared, issued,
registered, and done under this Act.

Section 2 Definitions

In this Act, unless there is anything repugnant in the subject or context

(1) bank means a company carrying on the business of banking and

registered under the Companies Act, 1956 (Central Act 1 of 1956).

(2) company means a company registered under the Companies Act, 1956
(Central Act 1 of 1956).

(3) co-operative society means a society registered under the Hyderabad

Co operative Credit Societies Act, No. 11 of 1323 F2.

(4) loan means a loan secured or unsecured, advanced on interest in cash

or in kind, and shall include every transaction which is in substance a loan,
but shall not include the following:

(a) a deposit of money or other property in a Post Office or in a bank or in

a company or with a co operative society;

(b) a loan to or by and deposit with, any society or association registered

under any law;

(c) a loan advanced by Government or by any local authority authorised

by Government;

(d) a loan advanced by a bank, a co operative society or a company;

(e) a sum of money advanced on the basis of a negotiable instrument as
defined in the Negotiable Instruments Act, 1881 (Central Act 26 of 1881)
other than a promissory note;

(f) a loan advanced to an agricultural labourer by his employer;

(g) a loan advanced by one trader to another trader in the ordinary course
of business, in accordance with practice in trade;

(h) a sum of money payable to a trader by a person other than a

cultivator or a labourer for articles sold on which interest is charged by
reason of non payment on due date;

(6) interest includes the return to be made expressly or impliedly in

excess of the actual amount of loan advanced;

(7) Money lender means a person including a pawn broker, who, within
the meaning of this Act, only advances loan in the ordinary course of his
business or does so along with other business, and shall also include the
legal representative of such person and the person claiming to be his
representative on the ground of succession or assignment or otherwise;

(8) pawn broker means a person who in the ordinary course of his
business advances loan and takes goods in pawn as security for payment
of such loan;

(9) trader means a person who in the ordinary course of his business buys
and sells goods and property and shall also include the following persons:
a wholesale dealer and retailer, a commission agent. a broker, a controller
of factory, a contractor, a factory owner, but shall not include a person
who sells only his non agricultural produce or cattle or buys agricultural
produce or cattle for his own use;

(10) cultivator shall mean a person who is a member of the agricultural

class within the meaning of the Prevention of Agricultural Land Alienation
Act No. III of 1349 F1 and whose main source of livelihood is agriculture;

(11) labourer shall mean a person who earns his livelihood merely by
physical labour and who receives wages in cash or in kind not exceeding
one rupee per day or thirty rupees per month.

(12) prescribed shall mean prescribed by rules made under this Act;

(13) stranger means a person who is not a citizen of India within the
meaning of the Citizenship Act, 1955 (Central Act 57 of 1955).

Section 2A Non mulki money lenders barred from carrying on

business of money lending

(1) No money lender who is a stranger shall carry on the business of

money lending from 18th Khurdad 1355 F.

(2) All licences granted under this Act to the money lenders referred to in
sub section (1) shall be deemed to have been cancelled from 18th
Khurdad 1355 F., and all transactions of money lending carried on by such
persons as money lenders shall cease from the said date. Such money
lender shall not be entitled to refund of licence fee or to compensation on
account of cancellation of licences.

(3) The money lenders referred to in sub section (1) who had obtained
licences of money lending under this Act prior to the 18th day of Khurdad
1355 F. may under the provisions of this Act, recover through a competent
court the loans advanced before the said date.
(4) Any money lender referred to in sub section (1) who carries on the
business of money lending in contravention of the provisions of the said
sub section, or recovers his dues otherwise than in accordance with the
provisions of sub section (3) shall, on conviction before the Collector, be
punished with imprisonment for a term which may extend to one year, or
with fine or with both. An appeal from the order of the Collector shall lie to
the Sessions Judge.

(5) An offence under this section shall be cognizable and bailable and the
Court trying the offence shall, unless it is proved to the contrary, presume
that the accused is a stranger and that he was carrying on the business of
money lending in contravention of the provisions of this section.

Section 3 Money lenders to get their names registered

(1) Every officer who has been authorised by Government under this Act
shall maintain a register of money lenders in such form and with such
particulars as may be prescribed. Such register shall be deem to be a
public document within the meaning of the Indian Evidence Act, 1872.

(2) Every money lender, in order to get his name registered, shall present
an application in writing in the prescribed form to the competent officer
and the said officer shall on such application being presented, register the
applicants name and grant a licence in the prescribed form and written
prescribed period:

Provided that the licensing authority may, if he has reason to believe that
a money lender is of undesirable conduct refuse to grant or to renew a
licence and shall record the reasons therefor. Where the licensing
authority is a Tahsildar an appeal from his order shall lie to the Collector
and to the Board of Revenue where the licensing authority is a Collector.
The decision of the appellate authority shall be final.

(3) Every person making an application under sub section (2) shall pay
such licence fee not exceeding twenty five rupees, as has been fixed for
the district concerned.

(4) A licence issued under sub section (2) shall be valid for one year from
the date of issue.

(5)

(a) No money lender shall carry on in any district the business of money
lending without obtaining a licence provided for in sub section (2).

(b) If any person contravenes the provisions of clause (a), he shall be

punished with rigorous imprisonment for a term which may extend to six
months or with fine or with both. The fine imposed shall, in case of
default, be recoverable as arrears of land revenue. The Collector shall
have power to award punishment under this clause. An appeal against his
order shall lie to the Sessions Judge.

(c) An offence this sub section shall be cognizable and bailable.

(6) [Omitted.]

Section 4 Power to cancel or suspend license

(1) Where it is found in respect of a money lender that after the

commencement of this Act
(a) he has been found guilty by a Civil Court of contravening the
provisions of Sections 5, 6 or 8 in more than two suits, or

(b) the suit instituted by him has been dismissed in whole or in part on
the ground that an entry relating to loan has been made by him in any
document showing the amount of loan to be in excess of that actually
advanced including the necessary expenses incurred, or

(c) that suit instituted by him was dismissed on the ground that it was
based on fraud, or

(d) he has been found guilty in a money transaction by a Court, of

forgery, cheating or coercion within the meaning of Section 15 of the
Indian Contract Act 1872 (Central Act 9 of 1872); or he or his agent has
been found guilty of contravening the provisions of Section 13. The
Collector may cancel the licence or suspend it for any term, or prohibit the
renewal thereof for a period not exceeding two years;

Provided that the Collector shall not pass such order until the expiry of the
period for appeal or revision or review and in case an appeal or revision or
review has been disposed of.

(2)

(a) The Collector may take action under sub section (1) either of his own
motion or on the application of an interested party:

Provided that no licence shall be cancelled or suspended nor renewal

thereof shall be prohibited without giving the money lender an opportunity
to defend.

(b) The Collector may, during the period for an appeal either of his own
motion or on the application of an interested party review his own order,
provided an appeal therefrom is not pending before the Board of Revenue.
An appeal from an order or the Collector shall lie to the Board of Revenue
whose decision shall be final.

Section 5 Money lenders to maintain accounts and to furnish

statements thereof to debtors

(1) A money lender shall

(a) maintain a regular account of loan for each debtor separately;

(b) deliver to the debtor every year the prescribed statement of account
signed by him or his agent specifying the amount of loan that may be
outstanding against such debtor on the prescribed date. Such statement of
account shall contain all transactions of loan entered into during that year.
The said statement shall be in the language of the village office of the
district for which the money lender has obtained a licence.

(2) The account mentioned in clause (a) of sub section (1) shall be so
maintained that items of principal and interest may be separately and
clearly ascertained and the balance of principal and interest shall be
shown separately. The money lender shall not be authorised to include the
interest or any portion of interest in the principal. The opening balance of
principal and interest shall be separately shown:

Provided that if after a loan was originally advanced by a money lender, a

widow or minor becomes entitled to such loan, such widow or minor shall
not be required to maintain the account and furnish the statement of
account under sub section (1) for a period of one year from the date on
which such right accrued.

(3) The licensing authority or any person authorised by him may inspect
the books of account of a money lender for the purpose of satisfying
himself that the provisions of this section are being complied with.

Section 6 Additional accounts to be maintained by pawn

brokers

(1) In addition to the duties mentioned in Section 5, every pawn broker

shall maintain a regular account showing the following particulars:

(a) details of each of the articles taken in pawn by which in can be

defined.

(b) the time agreed upon between the parties for the redemption of pawn,
and

(c) the name and address of the pawner.

(2) The pawn broker shall at the time of transaction deliver to the pawner
a statement of the aforesaid entries under his or his authorised agent s
signature, the said statement shall be in the language mentioned in clause
(b) of sub section (1) of Section 5.

(3) The licensing authority or any person authorised by him may inspect
the books of account of a pawn broker for the purpose of satisfying
himself that the provisions of this section are being complied with.

Section 7 Debtors not bound to admit correctness of accounts

A debtor to whom a statement of account has been furnished under clause

(b) of sub section (1) of Section 5, shall not be bound to admit or deny
the correctness of such account, and from his mere silence it shall not
presumed that he has admitted the correctness of the account.

Section 8 Receipt for payment of loan

Every money lender shall, without delay, pass a receipt for the payment
made by a debtor and if payment is made by challan an endorsement shall
be made thereon acknowledging receipt thereof.

Section 9 Procedure of Court in suits for recovery of loans

Notwithstanding anything contained in any law for the time being force, in
every suit relating to a loan:

(1) the Court shall frame and decide the issues whether the money lender
is a money lender as defined in sub section (7) of Section 2, and whether
he has complied with the provisions of Section 3 and of clauses (a) and
(b) of sub section (1) of Section 5 and sub sections (1) and (2) of Section
6.

(2) if it is proved that the plaintiff is a money lender as defined in sub

section (7) of Section 2, but does not hold a licence granted under
Section3, the Court shall dismiss his suit;

(2-A) if it is proved that the money lender has not complied with the
provisions of clause (a) of sub section (1) of Section 5, or of sub section
(1) of Section 6, or of section 8 and the plaintiff s claim is established in
whole or in part, the Court may, in the circumstances of the case, disallow
the whole or any portion of the interest due and may disallow the costs
wholly or in part;
(3) if it is proved that the money lender has not furnished the debtor with
a statement of account in accordance with the provisions of clause (b) of
sub section (1) of Section 5 or of sub section (2) of Section 6, the Court
shall, in computing the amount of interest exclude the interest in respect
of every period for which the money lender has not furnished the debtor
with the statement of account:

Provided that if the money lender has, after the prescribed time, furnished
the statement of account and the Court is satisfied that there was
sufficient cause for not furnishing the statement earlier, the Court may, in
spite of such default, include such period or periods for computing the
interest.

Explanation:- If a money lender has maintained his account and delivered

the statement of account in the prescribed form and manner, it shall, in
spite of any error or omission, be presumed that he has complied with the
provisions of clauses (a) and (b) of sub section (1) of Section 5 and of sub
sections (1) and (2) of Section 6, if the Court is of opinion that such error
or omission is accidental or immaterial and that the accounts are
maintained in good faith.

Section 10 Computation of interest

(1) The Government may, from time to time, by notification in the Andhra
Pradesh Gazette, fix the maximum rate of interest for any local area of
class of business of money lending in respect of secured loans and
unsecured loans.

(1-A) No money lender shall levy charges other than compound interest
and expenses mentioned in sub section (3) of this section incurred by him
in respect of loans.

(1-B) Whoever, being a money lender, demands or charges or receives

from a debtor interest at a rate exceeding the maximum rate fixed by the
Government under sub section (1), shall be punished with imprisonment
for a term which may extend to six months, or with fine which may extend
to one thousand rupees, or with both.

(2) The parties may include a stipulation in the agreement that if the sum
payable as interest is not paid on the date fixed, under the agreement the
money lender may charge simple interest on such sum by way of damages
from the date of default until it is paid, at a rate not exceeding half the
rate of interest payable on the principal and the interest so charged shall
not, for the purposes of this Act, be deemed to be part of the interest
charged in respect of the loan.

(3) When property is given by way of security or mortgage nothing in this

section shall prevent a money lender from recovering the expenses
incurred for investigating title to the property,the costs of stamp and
expenses for registration of document and other expenses incurred which
may be reasonable in the opinion of the Court, if the parties have agreed
in writing to the levy and payment of such expenses, otherwise only
expenses leviable under the Transfer of Property Act No. 1 of 1336 F. or
any other law for the time being inforce, shall be allowed.

Explanation:- In cases where the transaction of loan is in kind or loan is in

cash and its repayment in kind, or loan in kind and repayment in cash, the
amount of principal and interest shall be determined according to the local
market price of the commodity at the time of taking and repayment of
loan.

Section 11 Power of Court to limit interest due in certain

cases

(1) The provisions of this Act shall not apply to a loan advanced before the
commencement of this Act:

Provided that no Court shall be competent to pass a decree for a sum

exceeding the principal on account of any outstanding interest in respect
of a loan advanced to cultivator or labourer before the commencement of
this Act.

(2) In an inquiry under sub section (1) into the loan advanced to a
cultivator or a labourer, the outstanding interest shall be computed in the
following manner:

(a) the account for the twelve years preceding the commencement of this
Act shall be so examined that on the first day of the twelve years period
and if the loan had commenced within twelve years, on the date on which
the transaction commenced the amount outstanding against the debtor
shall be entered against the debtors name as principal:

(b) separate accounts, of the principal and interest shall be maintained;

(c) in the account of principal there shall be debited to the debtor s name
all such amounts as may, from time to time, have been actually received
by the debtor from the money lender and if any goods are sold as part of
the transaction, its price shall be included therein;

(d) in the account of principal there shall not be debited to the debtor s
name any outstanding interest which has been converted into principal by
any agreement, settlement, or contract in the course of the transaction;

(e) in the account of interest upto the date on which this Act comes into
force, simple interest on the balance of principal shall be calculated at the
rate agreed between the parties, provided that it does not exceed nine per
cent per annum in the case of secured loan and twelve per cent per
annum in the case of unsecured loan, and, from the date on which this Act
comes into force upto 18th Khurdad 1355 F, the rate of interest shall not
exceed nine per cent per annum and twelve per cent per annum
respectively. From 18th Khurdad 1355 F., the rate of interest shall not
exceed six per cent per annum and nine per cent per annum respectively;

(f) all payments made in cash or kind by the debtor to the money lender
or on his account, and all benefit of services or other advantages of every
description, received by the money lender in the course of the transaction
the value of which shall, if necessary, be determined by the court in its
discretion or with the aid of arbitrators appointed by it, shall be credited
first in the account of interest; and the balance if any, after payment of
the interest due shall be credited to the account of the principal;

(g) The principal and interest shall be calculated up to the date of

institution of the suit, and the balance, (if any) of the suit, outstanding
against the debtor on the said date. If the amount of interest exceeds the
principal, the amount of interest in excess of the principal shall not be
allowed.

Section 12 Order for payment of decretal amount by

instalments

(1) The court may, in respect of a decree without instalments passed after
the commencement of this Act at any time on the application of a
judgment debtor, after notice to the decree holder, direct that the amount
of the said decree shall be paid in such number of instalments and subject
to such conditions and on such dates as may, in its opinion, be proper
having regard to the circumstance of the judgment debtor and the amount
of the decree.

(2) In case the judgment debtor is a cultivator or a labourer, the power

mentioned in sub section (1) may also be exercised in respect of a decree
passed before the commandment of this Act; Provided that such power
shall not be exercised more than once in respect of the same decree.

Section 13 Punishment for molestation of debtor

(1) A moneylender or his agent who molests or abets the molestation of a

debtor for the recovery of debt shall be punished with rigorous
imprisonment for term which may extend to two years or with fine or with
both.
Explanation:- For the purposes of this section a money lender or his agent
shall be deemed to molest a debtor when he commits the following acts
with intent to prevent the debtor from doing any act which he has a right
to do or force him to do any act which he has a right not to do:

(a) obstructs the debtor or uses violence against or intimidates him, or

(b) follows the debtor wherever he goes or interferes with any property
owned or used by him or deprives him of, or hinders him in the use
thereof, or

(c) loiters or does any similar act at or near a house or place where the
debtors resides, works, or carries on any business or is present there by
accident;

Provided that if a money lender or his agent happens to be at or near such

house or place merely for the purpose of obtaining or communicating any
information or to make a demand for a loan due, he shall not be deemed
to have molested the debtor.

(2) An offence under this section shall be cognizable and bailable.

Section 14 Exemption from arrest

Notwithstanding anything contained in the Code of Civil Procedure, 1908 a

labourer or a cultivator who is a pattadar, shikmidar, Asami Shikmi or
holder of land with a revenue of fifty rupees or less, shall not be arrested
to be detained in civil Jail.

Section 15 Power to make rules

(1) Government may make rules for carrying out the purposes of this Act.

(2) All rules made under this Act shall come into force from the date of
publication in the Official Gazette.

Section 16 Power to Exempt

The Government may, by notification published in the Andhra Pradesh

Gazette and for reasons to be recorded therein, exempt any person or
class of persons or any financial or banking institution or agency or any
class of financial or banking institutions or agencies from all or any of the
provisions of this Act or the rules made thereunder, subject to such
conditions as the Government may deem fit to impose; and they may,
likewise, vary or cancel such exemption.

MONEY-LENDERS RULES, 1349

In exercise of the powers conferred by sub-section (1) of Section 15 of the

Money Lenders Act No. 5 of 1349 Fasli the Government is pleased to make
and enforce the following rules relating to the registration, and issue of
money-lending licences to money lenders and maintenance of accounts of
debts.

Rule 1 Title and commencement

These rules may be called the Money-Lenders Rules and shall come into
force from the date of publication in the Official Gazette.

Rule 2 Definitions

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

context:

(1) "Act" shall mean the Money Lenders Act, No. 5 of 1349 Fasli;

(2) Words and expressions used in these rules shall have the same
meaning as assigned to them in the Money-Lenders Act.

(3) "Authorised Attorney" shall mean such attorney as has been appointed
to be an attorney by a general or special power of Attorney.

Rule 3 Officers authorised to register money-lenders

(1) The power to register the name of money-lender and to grant him a
licence under sub- section (2) of the Section 3 of the Act, shall vest

(a) in the Municipal limits of the cities of Hyderabad and Secunderabad, in

the Collector, Hyderabad District; and

(b) in other areas in Tahsildar concerned.

(2) A licence issued under sub-rule (1) may be signed either by the officer
empowered in that sub-rule or on his behalf by any other officer
subordinate to him and authorised by him for this purpose.

Rule 4 Functions of officer as to registration of money-lender

The register maintained under sub-section (1) of Section 3 of the Act for
the purpose of registering money-lender shall be in the form of the
Schedule "A" attached hereto. Each page of the register shall bear the
serial number of the pages and seal of the concerned office also shall be
affixed thereto. At the end of the register the officer concerned shall,
under his hand, make an endorsement as to the total number of pages of
such register and affix his signature thereto.

Rule 5 Form of application

The application to be submitted by money lenders for registering

themselves and obtaining money-lending licences shall be in the form of
the Schedule 'B' attached hereto.

Rule 6 Court fee shall be charged on application

The Court fee payable on an application made under Rule 5 or 15 shall be

the same as is prescribed in the Court Fees Act, in accordance with the
status of the Department concerned.

Rule 7 Mode of making an application

Every application under Rule 5 may be made in person or through a
pleader or an agent.

Rule 8 Form of licence

A money lending licence, granted under sub-section (2) of Section 3 of the

Act shall be in the form of the schedule "C" attached hereto.

Rule 9 Fees for issue of licence

The fee to be charged under sub- section (3) of Section 3 of the Act on
every licence before the issue thereof shall be rupees twenty five.

Rule 10 Application to whom presented

Every money-lender may get himself registered and obtain a licence by

presenting an application to the officer empowered under Rule 3 within
whose jurisdiction the original place of his business or a branch thereof is
situated.

Rule 11 Procedure on presentation of application

As soon as an application is made in the prescribed form, the competent

officer shall enter the date of receipt thereon and if the application is in
accordance with the rules, shall proceed as follows :

(a) He shall require the applicant to deposit licence fee prescribed under 9
which shall be credited in the concerned treasury under the Revenue
Head.

(b) After the fee is deposited the application shall, so far as it is relevant,
be entered in the register mentioned in Rule 4 and after duly filing up the
licence, relevant serial number and date of the aforesaid register shall be
entered therein, and the licence shall within two weeks from the date of
depositing the amount be given to the applicant on acknowledgement of
receipt by him.

Rule 12 Money lender having business in more than one

District

A licence granted under Rule 11 shall be useful for one District only. A
money lender having his business in more than one District shall obtain a
separate licence for each district on payment of fees mentioned in Rule 9
for every licence.

Rule 13 Period for obtaining licence

Every Money-lender shall, within a period of three months from the date
of commencement of these rules, get himself registered and obtain
money-lending licence; otherwise he may be proceeded against under
Clause (b) of sub-section (5) of Section 3 of the Act.

Rule 14 Period for destruction of records pertaining to

registration and licence

The files relating to applications for registration and issue of licences shall
be preserved for six years and may thereafter be destroyed.

Rule 15 Procedure in case a licence is lost, destroyed or

spoiled

If any licence issued is lost, destroyed or rendered doubtful by any reason

or has become so spoiled as not to be legible a copy of the licence may be
obtained from the competent officer by making an application and on
payment of a fee at rupees five per copy thereof, and on such copy the
word "copy" shall be written with red ink in bold letters.

Rule 16 Renewal of licence

Every money-lender shall before the expiry of the period of licence obtain
another licence.

Rule 17 Procedure in case licence is not obtained for three

months after the commencement

Where after the expiry of three months from the commencement of these
rules, an officer mentioned in Rule 3 has reason to believe that any
money-lender is carrying on money-lending business within the limits of
his jurisdiction without a licence, he shall summon the money- lender and
investigate the matter. Where the Investigating Officer is of an inferior
rank than that of a (Talukdar) "Collector" he shall, after completing the
investigation, forward the report to the (Talukdar) "Collector". On receipt
of the report the (Talukdar) "Collector" may pass orders in accordance
with the provisions of Section 3 of the Act. If the investigating officer is
himself a (Talukdar) "Collector" he may after completing the investigation
pass such orders as he deems fit and the (Talukdar) "Collector" may direct
any officer subordinate to him to investigate such contravention, forward a
report and may, on submission of such report, pass order under Section 3
of the Act. But every such order under Section 3 shall be communicated to
the concerned licensing authority. The (Talukdar) "Collector" shall pass an
order after hearing the money-lenders.

Rule 18 Procedure for summoning witness and requiring

production of documents

For the purposes of Rule 17 the officer-concerned shall have the same
powers with regard to summoning of witness, requiring production of
documents, recording evidence and other proceedings as are provided in
Chapter X of the Land Revenue Act.

Rule 19 Disposal of fines recovered

The sums recovered under sub-section (5) or sub-section (6) of Section 3

of the Act in respect of penalty or compromise shall be credited under the
head 'pecuniary fines'.

Rule 20 No action to be taken on application for registration

and grant of licence in case of contravention of the Act

Where an investigation is going or against any money-lender on the

ground of contravention of sub- section (5) of Section 3 of the Act, no
action shall be taken under Rule 11 on the application by such money-
lender for registration and grant of a licence until such investigation has
been finally disposed of. On completion of investigation action shall,
however, be taken in accordance with the result thereof.
Rule 21 Application shall be in writing enclosing copies of
papers relied upon

Every application presented under sub-section (2) of Section 4 of the Act

shall be in writing and shall be accompanied with formal copies of such
papers, as are relied upon by the applicant.

Rule 22 Civil Courts shall forward extracts of judgments, etc.

The Civil Courts shall, from time to time after the expiry of the period of
appeal and if appeals have been filed, after the passing of judgments in
such appeals communicate to the (Talukdar) "Collector" particulars of
matters mentioned in Clauses (a) to (d) of sub-section (1) of Section 4 of
the Act forwarding extracts of final judgments. The aforesaid extracts and
copies shall be sent to the (Talukdar) "Collector" free of charge.

Rule 23 Procedure as to cancellation and suspension of

licence

The (Talukdar) "Collector" shall before passing a final order under Section
4 of Act, cause a notice to be served upon the money-lenders, fixing a
date and requiring him to show cause why his licence should not be
suspended or cancelled or renewal thereof be prohibited for the
contravention. The (Talukdar) "Collector" shall, if the money-lender files
objections before the date fixed in the notice, after considering the same
and if the money- lender does not file objections before the date fixed
then after the said date, pass reasonable order in accordance with Section
4 of the Act, which shall be communicated to the money-lender and the
licensing authority concerned.
Rule 24 Form of statement of account

The statement of account mentioned in Clause (b) of sub-section (1) of

Section 5 of the Act shall be in Form (D) of the Schedule attached hereto.

Rule 25 Form of inventory of articles taken in pawn

a pawnbroker shall furnish to the pawner in Form (E) of the Schedule

annexed hereto, an inventory of the articles taken in pawn.

Rule 26 Form of receipt for money paid

The receipt which shall be given by the money-lender under Section 8 of

the Act for the money paid by the debtor shall be in Form (F) of the
Schedule attached hereto.

Rule 27 Prescribed forms shall be furnished by money-lender

The form prescribed by these rules shall be furnished by every money

lender at his own cost.

Rule 28 Language of numerals to be used

The numerals in the entries of the statement of account referred to in Rule

24 and the inventory of articles taken in pawn referred to in Rule 25 shall
be of the same language in which the statement has been prepared.

Rule 29 Name and residence of the debtor and his father's

name shall be entered in the account

Full name, nationality and residence of every debtor together with father's
name and full name, nationality and residence of every joint debtor, if
any, together with his father's name shall be written on the top of the
account maintained by a money-lender in accordance with the provisions
of sub-section (1) of Section 5 of the Act.

Rule 30 Accounts to be maintained datewise

The advance of every loan and payment thereof shall be entered

separately and datewise in the account of debt as also in the statements
of debt as also in the statements of account.

Rule 31 Fixation of the period for forwarding statement of

account

The statement of account mentioned in Rule 24 shall be sent to the debtor

within one month after the date mentioned below relating to each
statement:

For cash accounts Diwali

For accounts pertaining to grains Thirteenth day of Vaisakh

Rule 32 Entries in the Statement shall tally with the entries in

the account books

The entries pertaining to the amount of loan, date of advancing loan, rate
of interest and the amounts repaid made in the Statement of account
mentioned in Rule 24 shall tally with the entries made in the account
books of a money-lender maintained under the Act.

Rule 33 Mode of furnishing statement of account to debtor

(a) A copy of the statement of account shall with the debtor's expenses be
sent by post to the debtor at his address and the postal expenses shall be
charged to the debtor's account. The money-lender shall, while sending
the statement of account by post, obtain a certificate of posting and
preserve it.

(b) In case there are two or more joint debtors, in the absence of an
agreement to the contrary, the statement shall be furnished as aforesaid
to all such debtors as are concerned with the debt.

(c) In case a statement of account is handed over to the debtor, joint

debtor, the receipt from such debtor or joint debtor, shall be obtained on a
separate paper and preserved on which the signature or thumb impression
of the debtor or the joint debtor shall be affixed:

SCHEDULE A Money-lenders Rules

Schedule Schedule (A)

Money-lenders Rules

Money-lenders Register provided in sub-section (1) of Section 3 of the Act

and referred to in Rule 4

Maintained at the office of.............................Taluq.........................

District ............................. of 13............................ F/19...........A.D.

Serial number

Date of registration
Money-lender's name together with his father's name

Nationality or religion

Residence together with particulars about locality, village, taluk

and district

Head-quarters of business within the district and other places

where branches are situated

Reference to the depositing of licence fee :

Name of treasury

Amount of licence fee

Page No. of ledger

Date Signature of licensing authority

Signature of the applicant in acknowledgement of the receipt of required
licence

Brief remarks of contravention together with particulars about

punishment, file number and signature of the competent authority

SCHEDULE B Form of application for Registration and Grant of

Money-Lending licence

Schedule Schedule (B)

Money-lenders Rules

Form of application for Registration and Grant of Money-Lending licence

(As provided in sub-section (2) of Section 3 of the Act and referred to

in Rule 5)
To

The Tahsildar

.......................'Collector'

Taluq.............................

District...........................

Sir,

In accordance with the provisions of sub-section (2) of Section 3 of the

Money-Lenders Act, 1349 F., I would like to register my name as money-
lender. Therefore I request you to kindly register me as a money-lender
and grant me a money-lending licence as per rules. I am prepared to pay
the licence fee, prescribed by the Government in cash.

My permanent residence is ............... Locality/village

Taluq...............District...............My nationality is...............and my
religion is...............Headquarters of my money-lending business in
town/village...............Taluq...............District/village...............Taluq.......
................ District...............for which licence is required.

Dated :

Petitioner,

Full name.....................and

Father's Name

Signature or thumb impression

SCHEDULE C Money-lenders Licences

Schedule Schedule (C)

Money-lenders Rules

Money-lenders Licences
(As provided in sub-section (2) of Section 3 of Money-lenders Act

and referred to in Rule 8)

Serial No. of Money-lender's Register ( )

I certify that Mr. or Mrs............... son of/wife

of...............Community...............or religion...............resident
of...............Taluq...............District...............has been registered
today...............135 F.,/19...............A.D. as money-lender under sub-
section (3) of Section 3 of the Money-lender's Act, 1349 F. for
District...............and permission is hereby accorded to the said Mr. or
Mrs................to carry on money-lending business

in the said District.

"Collector"

(Tahsildar)
Tahsildar District

Taluq

SCHEDULE D Money-lenders Rules

Schedule

Schedule (D)

Money-lenders Rules

Statement of accounts as provided in Clause (b) of sub-section (1) of

Section 5 of the Act and referred to in the Rule 24

Account of debt due from ...............s/o ...............nationality

...................R/o ...............Arrears of previous interest

...............Capital...............total
Loan advanced :

1. Date

2. Details of total loan advanced

Amount of Loan :

3. Cash

4. Kind with particulars of weight or quantity or number

5. Value of kind mentioned in column (4)

Amount of Interest :
6. Rate of interest per annum

7. Capital on which interest was charged

8. Period for which interest was charged

9. Amount of interest

10. Remarks

Payment :

11. Date

12. Details of total payment in cash or kind

Figures of payment :

13. Cash
14. Kind with particulars of weight or quality or number

15. Value of kind mentioned in column (4)

Details of Payment :

16. Interest

17. Capital
18. Remarks.

Abstract of Transaction

(1) Outstanding arrears Interest Capital Total

(2) Loan advanced during

the current year Interest Capital Total

Total Interest Capital Total

(3) Payment during the

current year Interest Capital Total

(4) Arrears upto the

end of 13.. F./19.. A.D. Interest Capital Total

SCHEDULE E Money-lenders Rules

Schedule Schedule (E)

Money-lenders Rules

Inventory of articles taken in pawn as provided in sub-section (2) of

Section 6 of the Act and referred to in Rule 25.

Pawnbroker's name................S/o...............Nationality R/o..................

Locality/Village..............Taluq

District

(Money-lending licenceNumber............of..........13.....F./19......A.D.)
1. Date of taking in pawn.

2. Name of pawner together with father's name.

3. Nationality or religion.

4. Age.

5. Residence with particulars of his locality, village, taluk and district.

Date of articles taken in pawn with particulars of commodities

etc.

6. Name of commodity.

7. Weight, quantity or number.

8. Amount of debt.
9. Period fixed for the redemption of the pledge.

10. Rate of interest per annum.

11. Remarks.

Signature of pawner.

Signature of pawnbroker or Agent.

Date month 13.. F./19.. A.D.

SCHEDULE F RECEIPT

Schedule Schedule (F)

Money-lender Rules

RECEIPT

(As provided in Section 8 of the Act and referred to in Rule 26)

Money-lender's name

Father's name...............Nationality ............... R/o

...............Locality/Village ...............Taluq ...............
District...............Money-lending licence number...............of
13...............F/19.......A.D.

I.G. Rs................Np................

(...............) Maunds and (...............) Seers of (...............)valued I.G.

Rs...............Np................

from Mr...............s/o............... Nationality and R/o...............towards

repayment of his debt and credited
to his account.

Money-lender/Agent

Signature.
Act Type : Andhra Pradesh State Acts