Vidhi Codex

The Puducherry Money Lenders Act, 1970

The Puducherry Money Lenders Act, 1970

Finance197032 sections

This law regulates the private money-lending business in the Union Territory of Puducherry to protect borrowers from high interest rates and unfair practices. It applies to individuals and private firms that lend money for profit, while excluding banks and official financial institutions. Money lenders must obtain mandatory licences, display their business names, maintain accurate accounting records, issue receipts for payments, and adhere to government-capped interest rates. The law strictly prohibits intimidation, harassment, and entering false loan amounts in legal documents. It matters because it provides judicial protection to debtors by allowing courts to reduce excessive interest and settle disputes fairly.

Start reading →Read full ActSections
  1. 1. Short title, extent and commencement
  2. 2. Definitions
  3. 3. Money-lender to obtain licence
  4. 4. Grant and refusal of licences
  5. 5. Change of place of business by money-lender
  6. 6. Money-lenders to exhibit their names over shops
  7. 7. Interest and charges allowed to money-lenders
  8. 8. Power to deposit in Court, money due on loan
  9. 9. Money-lender to keep books, give receipts, etc.
  10. 10. Appointment of Inspectors and their powers
  11. 10A. Entry of wrong sum in bond, etc., to be an offence
  12. 11. Money-lender advancing smaller amount or securing higher interest than that specified in the accounts, etc., to be punishable
  13. 12. Cognizance of offences
  14. 12A. Offences under section 18A to be cognizable
  15. 13. Penalty for molestation of debtor
  16. 14. Power to cancel licences, etc.
  17. 15. Publication of order of cancellation
  18. 16. No compensation for cancellation of licence
  19. 17. Penalty for carrying on business without licence
  20. 18. Penalties
  21. 18A. Non-citizens not to carry on business of money lending
  22. 19. Transfer of licence to heir
  23. 20. Jurisdiction to try offence
  24. 20A. Power of court to limit interest recoverable in certain cases
  25. 20B. Power of court to direct payment of decretal amount by instalments
  26. 20C. Reopening of transaction
  27. 20D. Inquiry for taking accounts and declaring the amount due
  28. 20E. Composition of offence
  29. 21. Contracts not to be void on account of offence
  30. 21A. Savings
  31. 22. Power to make rules
  32. Statement. Statement of Objects and Reasons

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