Chapter VII Chapter VII

Offences and Penalties

1. (1) No money lender or accredited loan provider shall take any promissory note, acknowledgment, bond or other writing from the borrower which does not state the actual amount of the loan, or which states such amount

wrongly or which contains blank spaces to be filled after execution.

1. (2) Whoever contravenes the provisions of sub-section (1) shall, on conviction, be punished with fine which may extend to twenty thousand rupees or with imprisonment which may extend to one year or with both.

principal any salami, batta, dharmada or other extraction of similar nature by whatever name called, he shall be punishable with fine which may extend to twenty thousand rupees.

1. (1) Whoever molests, or abets the molestation of, a borrower for the recovery of a debt due by him to a money lender or accredited loan provider or his assignee, as the case may be, shall on conviction be punished with imprisonment which may extend to two years or with fine which may extend to one lakh rupees or with both. Explanation:— For the purposes of this section, a person who, with intent to cause another

person to 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,—

1. (a) obstructs or uses violence to or intimidates such other person; or
2. (b) persistently follows such other person 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; or
3. (c) loiters at or near a house or other place where such other person resides or works, or carries on business, or happens to be; or
4. (d) does any act calculated to annoy or intimidate such other person or the members of his family; or
5. (e) moves or acts in a manner which causes or is calculated to cause alarm or danger to the person or property of such other person, shall be deemed to molest such other person. Provided that a person who goes to the house or place referred to in clause (c) merely to obtain or communicate information shall not be deemed to molest.

1. (2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (Central Act 2 of 1974), offence punishable under sub-section (1) shall be cognizable.

Whoever carries on the business of providing loans without obtaining registration or otherwise than in conformity with the terms and conditions imposed by the registering authority shall be punished with imprisonment for a term which may extend to one year and with fine which may extend to fifty thousand rupees.

If any person contravenes any provisions of this Act, he shall be punishable with fine which may extend to ten thousand rupees.

1. (1) The Registering Authority or any other officer or authority authorized by the Government in this behalf, may accept from the person who has

committed or is reasonably suspected of having committed an offence under this Act, by way of composition of such offence.

1. (a) a sum of money equal to the maximum amount of fine as provided under this Act, if the offence is committed for the first time ;and
2. (b) in other cases, twice the amount of fine as provided under this Act.

Provided that an offence with respect to which a proceeding is pending before the Court shall not be compoundable under this section.

1. (2) Notwithstanding anything contained in sub-section (1), offence punishable under section 21 of this Act shall be cognizable and shall not be compoundable.

No Court shall take cognizance of any offence, except the offence under section 21, save on a complaint made by Registering Authority or any other officer duly authorized in this behalf by the Government.