Maharashtra Money-Lending (Regulation) Ordinance, 2014


AN ORDINANCE to regulate the transactions of money-lending in the State of Maharashtra.
WHEREAS the harassment at the hands of money-lenders have increased in the State resulting into the frequent suicides by farmers; 

AND WHEREAS the existing enactments on money-lending is found to be inadequate to protect the farmers-debtors and to prevent them from the harassment by the money-lenders;

AND WHEREAS under the circumstances it has become absolutely necessary for the Government to take appropriate and stringent social and legal measures to effectively prevent the harassment to the farmers-debtors at the hands of the money-lenders ; it is expedient to make a new law having better provisions for the regulation and control of transactions of money- lending in the State of Maharashtra;

AND WHEREAS both Houses of the State Legislature are not in session;

AND WHEREAS the Governor of Maharashtra is satisfied that circumstances exist which render it necessary for him to take immediate action to make a law for the purposes aforesaid;

Short title, extent and commencement.


AND WHEREAS the Instructions from the President under the proviso to clause (1) of article 213 of the Constitution of India have been obtained;

NOW, THEREFORE, in exercise of the powers conferred by clause (1) of article 213 of the Constitution of India, the Governor of Maharashtra is hereby pleased to promulgate the following Ordinance, namely:—

1. (1) This Ordinance may be called the Maharashtra Money-Lending (Regulation) Ordinance, 2014.

(2) It extends to the whole of the State of Maharashtra. (3) It shall come into force at once.

2.In this Ordinance, unless the context otherwise requires,—

(1) “bank” means a banking company or a co-operative bank to which
the Banking Regulation Act, 1949 applies and includes,— 10 of 1949.
(a) the State Bank of India constituted under the State Bank 23 of India Act, 1955 ;1955.

(b) a subsidiary bank as defined in the State Bank of India 38 of (Subsidiary Banks) Act, 1959; 1959.

(c) a corresponding new bank constituted under the Banking 5 of Companies (Acquisition and Transfer of Undertakings) Act, 1970,1970.or, as the case may be, under the Banking Companies (Acquisition 40 of and Transfer of Undertakings) Act, 1980 ; and 1980.

(d) any other banking institution referred to in section 51 of the Banking Regulation Act, 1949; 10 of 1949.

(2) “ banking company ” shall have the same meaning as assigned to it by clause (c) of section 5 of the Banking Regulation Act, 1949 ;10 of 1949.

(3) “ business of money-lending ” means the business of advancing loans whether in cash or kind and whether or not in connection with, or in addition to any other business ;

(4) “ capital ” means a sum of money which a money-lender invests in the business of money-lending.

(5) “company ” means a company as defined in the Companies Act, 1 of 1956 or the Companies Act, 2013 ;1956.18 of 2013.

(6) “ Co-operative Bank”, “ co-operative society ”, “ multi-state co-operative Bank ” and “ primary credit society ” shall have the same meanings as assigned to them by clause (c) of section 56 of the Banking 10 of Regulation Act, 1949.

(7) “debtor” means a person to whom a loan is advanced whether in cash or kind and includes his successor in interest or surety;

(8) “ inspection fee ” means the fee leviable under section 12 in respect of inspection of books of accounts of a money-lender;

(9) “ interest ” includes any sum by whatsoever name called, in excess of the principal paid or payable to a money-lender in consideration of, or otherwise in respect of, a loan, but does not include any sum lawfully charged by a money-lender for, or, on account of costs, charges or expenses in accordance with the provisions of this Ordinance, or any other law for the time being in force;

(10) “investment in business” means total amount invested, from time to time, in business of money-lending by a money-lender;

(11) “licence” means a licence granted under this Ordinance ; (12) “ licence fee ” means the fee payable in respect of a licence;

(13) “loan” means an advance at interest whether of money or in kind but does not include,—

(a) a deposit of money or other property in a Government Post Office bank or in any other bank or in a company or co-operative society;

(b) a loan to, or by, or a deposit with any society or association registered under the Societies Registration Act, 1860 or any other enactment relating to a public, religious or charitable object;
(c) a loan advanced by the Government or by any local authority authorized by the Government ;
(d) a loan advanced to a Government servant from a fund, established for the welfare or assistance of Government servants, and which is sanctioned by the State Government ;
(e) a deposit of money with, or a loan advanced by, a co-operative society ;
(f) an advance made to a subscriber to, or a depositor, in a provident fund from the amount standing to his credit in the fund in accordance with the rules of the fund ;
(g) a loan to, or by, an insurance company as defined in the Insurance Act, 1938 ;
(h) a loan to, or by, a bank ;
(i) a loan to, or by, or deposit with, any corporation (being a body not falling under any of the other provisions of this clause), established by or under any law for the time being in force which grants any loan or advance in pursuance of that Act ;
(j) an advance of any sum exceeding rupees three thousand made on the basis of a negotiable instrument as defined in the Negotiable Instruments Act, 1881, other than a promissory note ;
(k) an advance of any sum exceeding rupees three thousand made on the basis of a hundi (written in English or any Indian language) ;
(l) an advance made bonafide by any person carrying on any business, not having for its primary object the lending of money, if such advance is made in the regular course of his business ;
(m) except for the purposes of sections 29 and 31,-
(i) a loan, by a landlord to his tenant for financing of crops or seasonal finance, of not more than Rs. 1,000 per acre of land held by the tenant;
(ii) a loan advanced to an agricultural labourer by his employer;

Explanation.—The expression “ tenant ” shall have the meaning assigned to it in the Maharashtra Tenancy and Agricultural Lands Act, or any other relevant tenancy law in force relating to tenancy of agricultural lands, and the expressions “ financing of crops ” and “ seasonal finance ” shall have the meanings assigned to them in the Maharashtra Agricultural Debtors’ Relief Act;

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