Section 17 in Andhra Pradesh Micro Finance Institutions (Regulation of Money Lending) Rules, 2011
17. Procedure to be adopted in case of excess recovery.
(1)Every Registering Authority, on any complaint of excess recovery of the loan by the Micro Finance Institution or in cases where the interest exceeded the principal amount, shall cause notice to be served upon the said Micro Finance Institution, fixing a date requiring the Micro Finance Institution to show cause why the Registration should not be suspended or cancelled or renewal thereof be prohibited for the said contravention.(2)The Registering Authority shall consider the explanation filed if any, received before the last date stated in the notice, and pass order for refund of such excess money to the borrower.(3)Non-implementation of the Order passed in accordance with Section 9 of the Act shall be an offence punishable under Section 18 of the Act.
