Relief measures for affected borrowers

Relief measures for affected borrowers.—

1. (1) Discharge of illegal and excessive loans.—All loans advanced by unregistered lenders, loans that violate the interest rate caps specified in this Act, loans obtained through coercive means, or loans that violate other provisions of this Act shall be deemed discharged to the extent of violation, and borrowers shall have no legal obligation to repay such excess amounts.
2. (2) Prohibition on civil recovery of illegal amounts.—No civil court, tribunal, authority, or arbitrator shall entertain any suit, application, petition, or proceeding for recovery of loans or amounts that are deemed discharged under sub-section (1), and all pending proceedings for recovery of such illegal amounts shall abate immediately upon determination of such illegality.
3. (3) Relief from excessive recovery.—Where any borrower has already repaid amounts exceeding the limits prescribed under this Act such borrower shall be entitled to refund of excess amounts with interest at the rate of twelve percent per annum from the Borrower Protection Fund or directly from the lender.