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[Cites 0, Cited by 45] [Entire Act]

State of Kerala - Section

Section 4 in The Kerala Money-Lenders Act, 1958

4. Grant and refusal of licenses.

(1)Every application for a money-lender's licence shall be in writing and shall be made to the licensing authority and in the manner prescribed under this Act:Provided that a person under the age of eighteen years or a lunatic as defined in section 3 (5) of the Indian Lunacy Act, 1912 (Central Act IV of 1912) shall be eligible to apply for a licence only through a guardian:Provided further that if any person acting as a guardian on behalf of a minor or a lunatic applies for, and obtains, a licence under this Act, such guardian shall be subject to all the provisions of this Act as if the licence has been granted to himself.
(2)Every licence shall be granted in such form as may be prescribed and shall be subject to the following conditions and to such other conditions as may be prescribed, namely:-
(i)payment of a licence fee of ["six thousand rupees"] ;
(ii)payment of security as provided in sub-section (2A).
(iii)that deposits shall be accepted only in accordance with the provisions of the Reserve Bank of India Act, 1934 (Central Act 2 of 1934), and at such rates of interest not exceeding the rates fixed by the Reserve bank of India under the Non-banking Financial Companies (Reserve Bank) Directions, 1977.
(2A)Every licensee specified in column (1) of the Table below shall, within such time and in such manner as may be prescribed, deposit in the Government Treasury in respect of each licence held by him, the amount specified in the corresponding entry in column (2) of the said Table, by way of security for the due observance of the conditions of the licence.Explanation. - For the removal of doubts, it is hereby declared that a moneylender whose principal place of business is situate outside the State of Kerala and who has within the State of Kerala a branch office or branch offices or a liaison office or any other office by whatever name called, of his principal place of business shall be liable to deposit the security under this sub-section in respect of such branch or each of the branches or liaison office or any other office, as the case may be.
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1. A licensee who lends less than one lakh rupeesin an year Five thousand rupees
2. A licensee who lends one lakh rupees or abovebut less than five lakh rupees in an year Ten thousand rupees
3. A licensee who lends five lakh rupees or abovebut less than ten lakh rupees in an year Fifty thousand rupees
4. A licensee who lends ten lakh rupees or above,but less than twenty-five lakh rupees in an year One lakh rupees
5. A licensee who lends twenty-five lakh rupees orabove, but less than fifty lakh rupees in an year One lakh and fifty thousand rupees
6. A licensee who lends fifty lakh rupees or above,in an year Two lakh rupees.
(2B)For the purposes of sub-section (2A), the amount lent by a licensee for the year for which the security is to be paid shall be deemed to be-
(a)the maximum aggregate loan amount outstanding on any day during the previous year; or
(b)the amount invested by the licensee including all deposits received by him during the previous year, if the maximum aggregate loan amount outstanding is not ascertainable from his accounts;.
(3)The licensing authority may by order in writing refuse to grant a licence if such authority is satisfied?
(a)that the applicant has not complied with the provisions of this Act or the rules made thereunder in respect of an application for the grant of a licence; or
(b)that the applicant has made willful default in complying with or knowingly acted in contravention of any requirement of this Act; or
(c)that the applicant has-
(i)knowingly participated in or connived at any fraud or dishonesty in the conduct of or in connection with the business of money-lending; or
(ii)been found guilty of an offence under Chapter XVII or Chapter XVIII of the Indian Penal Code (Central Act XLV of 1860); or
(iii)been found guilty of an offence under section 11 or section 13 .[******************]
(d)that the application is made within six months of the cancellation of the licence
(4)Every order of the licensing authority under sub-section (3) shall be communicated to the applicant in such manner as may be prescribed.
(4A)The licensing authority may, if it is satisfied that an applicant could not apply for a licence under this Act, for reasons beyond his control within the period referred to in sub-section (1)of section 3, grant a licence with retrospective effect on realizing a penalty not exceeding the prescribed licence fee.
(5)Every licence granted under this Act shall, subject to the provisions of sub-section (7), expire on the last day of the year in which it was granted.
(6)A licence granted under sub-section (2) may be renewed from year to year and the provisions of sub-sections (1) to (5) shall apply in relation to the renewal of a licence as they apply in relation to the grant of a licence.
(7)If orders refusing to renew a licence are not communicated to a money-lender by the licensing authority before the expiry of his current licence, the money-lender shall, not-withstanding such expiry, be deemed to have a valid licence till orders are received by him on his application for renewal.
(8)Nothing in this section shall be deemed to disentitle a money-lender, whose licence has expired or has not been renewed from taking steps to recover any loan advanced during the period when the licence was in force.