The Telangana Pawn Brokers Act, 2002
The Telangana Pawn Brokers Act, 2002
The Telangana Pawn Brokers Act, 2002, regulates the commercial pawn brokering industry in the state of Telangana. It applies to all individual and corporate pawn brokers and their customers. The law requires pawn brokers to obtain official licenses, keep detailed transaction records, and issue physical pawn tickets. Crucially, it caps interest rates, guarantees a minimum two year redemption period for clients, and mandates that surplus funds from auctioning outstanding items be returned to the borrower. This legislation matters because it protects consumers, particularly financially vulnerable individuals, from predatory lending practices, unfair interest charges, and the wrongful loss of their personal property.
- 1. Short title, extent and commencement.
- 2. Definitions.
- 3. Pawn broker to obtain licence.
- 4. Granting and refusal of licence.
- 5. Pawn brokers to exhibit their names.
- 6. Change of place of business by pawn broker.
- 7. Interest chargeable by pawn broker.
- 8. Pawn ticket to be given to pawner.
- 9. Pawner entitled to redeem pledge.
- 10. Protection of pawners not having pawn tickets.
- 11. Pawn broker to keep books, give receipts, etc.
- 12. Redemption of pledge.
- 13. Sale of pledge and inspection of sale books.
- 14. Liability of pawn broker in case of fire.
- 15. Compensation for depreciation of pledge.
- 16. Appointment of Inspectors and their powers.
- 17. Powers to order production of accounts and powers of entry and inspection.
- 18. Power to summon witnesses and cause production of documents.
- 19. Assistance of Police Officers.
- 20. Power to cancel licence, etc.,
- 21. Publication of order of cancellation.
- 22. No refund of licence fee.
- 23. Appeals.
- 24. Pawn broker advancing smaller amount or receiving higher interest than that specified in the accounts to be punishable.
- 25. Certain other acts of pawn brokers to be punishable.
- 26. Certain acts of pawners and others to be punishable.
- 27. Duties of the pawn broker.
- 28. General penalty for contravention of Act, etc.,
- 29. Penalty for carrying on business without licence or in violation of the conditions of the licence.
- 30. Liability of the pawn broker for the acts committed by his agents or employees.
- 31. Transfer of licence to heirs.
- 32. Contracts not to be void on account of offences but interest and costs not to be allowed in certain cases.
- 33. Power of revision by the Government.
- 34. Bar of certain proceedings.
- 35. Power to make rules.
- 36. Act not to effect or alter the law relating to relief of agricultural and other indebtedness.
- 37. Repeal and savings.
PDF: pending for this language.