The Maharashtra Money Lending (Regulation) Act, 2014

General201457 sections

The Maharashtra Money-Lending Regulation Act of 2014 regulates the business of advancing interest-bearing loans in Maharashtra. It applies to individuals, undivided Hindu families, and companies operating as private money-lenders, while exempting formal financial institutions like banks. To operate legally, lenders must obtain a state license, pay inspection fees, and keep proper registers. This legislation matters because it protects borrowers from predatory interest rates and fraud by bringing accountability to informal lending. Furthermore, courts will dismiss debt recovery suits filed by unlicensed lenders, which effectively deters illegal operations, thereby safeguarding vulnerable citizens from unchecked financial exploitation across this entire Indian state.

Start reading →Read full ActSections

1. Short title, extent and commencement.
2. Definitions.
3. Appointment of Registrar General and other officers to assist him.
4. Money-lender not to carry on business of money-lending except for area under licence and except in accordance with terms of licence.
5. Application for licence.
6. Grant of licence and entry in register.
7. Register of money lenders.
8. Refusal of issue of licence.
9. Revisionary powers of Registrar General.
10. Term of licence.
11. District Registrar’s power to cancel licence.
12. Levy of inspection fee.
13. Suits by money-lenders not holding licence.
14. Application for cancellation of licence.
15. Registrar General and his subordinates to have powers of Civil Court.
16. Power of authorized officer to require production of records or documents.
17. Disposal of property pledged with money-lender carrying on business of money-lending without valid licence.
18. Return of immovable property acquired in course of money-lending.
19. Court’s power to cancel or suspend licence.
20. No compensation for suspension or cancellation of licence.
21. Persons debarred from doing money-lending during period of suspension or cancellation of licence.
22. Person whose licence is suspended or cancelled not to apply without giving particulars of endorsement or of disqualification.
23. Promissory note, Bond, etc., to be factual.
24. Duty of money-lender to keep accounts and furnish copies.
25. Delivery of statements of accounts and copies thereof by money-lenders.
26. Fees for certain statements supplied to debtors and Assistant Registrar.
27. Debtor not bound to admit correctness of accounts.
28. Procedure of Court in suit regarding loans.
29. Power of Court to limit interest recoverable in certain cases.
30. Power of Court to direct payment of decretal amount by installment.
31. Limitation on rates of interest.
32. Prohibition of charge for expenses on loans by money-lenders.
33. Assignment of loans.
34. Application of Act as to assignees.
35. Re-opening of transactions.
36. Inquiry for taking accounts and declaring amount due.
37. Deposit in Court of money due to money-lenders.
38. Calculation of interest.
39. Penalty for doing money-lending without valid licence.
40. Penalty for making false statement.
41. Obtaining licence under fictitious name, carrying on money-lending at a place not mentioned in licence, etc.
42. Penalty for wrong entry in promissory note, Bond, etc.
43. Penalty for contravention of section 24 or 25.
44. Penalty for charging rate of interest in contravention of section 31.
45. Penalty for molestation.
46. General provisions regarding penalties.
47. Offences by corporations, etc.
48. Certain offences to be cognizable.
49. No arrest and imprisonment in execution of decree for money against agricultural debtors.
50. Every officer to be public servant.
51. Protection of action taken in good faith.
52. Provision of XXVIII of 1947 saved.
53. Power of State Government to delegate its powers.
54. Rules.
55. Power to remove difficult.
56. Repeal of Bom. XXXI of 1947 and saving.
57. Repeal of Mah. Ord. I of 2014 and saving.

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