Money-lender advancing smaller amount than that specified in the accounts etc. to be punishable

Finance195725 sections

Statutory text

(1) Any money-lender whether licensed or not—
- (a) who actually advances an amount less than the amount shown in his accounts or registers or the document relating to the loan, or
- (b) who takes or receives interest or any other charge at a rate higher than the rate shown in the accounts, registers or documents aforesaid or allowed under this Act, shall be punished with imprisonment for a term not exceeding six months but not less than three months: Provided that the Court may, in addition to such imprisonment, impose a fine which may extend to one thousand rupees. (1-A) Notwithstanding anything contained in the Indian Evidence Act, 1872 (Central Act I of 1872) or in any other law for the time being in force, in any suit by or against a money-lender, whether licensed or not, or in any prosecution or other proceeding in a Court, the burden of proving that the money-lender had actually advanced to the debtor the amount specified in—
- (a) any document relating to the loan; or
- (b) the accounts or registers of such money-lender, shall be on the money-lender.
(2) If a money-lender is convicted of an offence under section 10-A or under this section, the Court convicting him may cancel his licence as a money-lender.
(3) Any person aggrieved by an order of the licensing authority cancelling a licence may, within one month of the date of communication of the order to him, appeal to the prescribed authority.

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