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Wednesday, May 14, 2014


Operation KUBERA - the 2014 action of Kerala Police to book illegal money lenders made the money lenders who are doing the business without license to run from pillar to post.
There are instances where some people are using this as an occasion to file a petition against the money lender, whom they owed and thereafter, to get rid of the liability for ever.
However, if proper steps are taken, money lending business can be conducted legally, in all sense.
The Kerala Government legislated Kerala Money-lenders Act, 1958 to regulate the business of money lenders.
The details of legal formalities-

Sec 3. Money-lender to obtain licence.― (1) From the date on which the provisions of this Act are brought into force in any area, no person, firm or joint family [18].[“or
unincorporated association of individuals shall commence or”] carry on or continue business as a money-lender at any place in such area without a licence obtained under this Act or in contravention of the terms thereof:

Provided that nothing in this section shall be deemed to prohibit a person who has applied for a licence to carry on or to continue business as a money-lender pending orders on his application.
(2) Where a money-lender has more than one shop or place of business, whether in the same town or village or in different towns or, villages he shall obtain a separate licence in respect of each shop or place of business.

1. A licensee who lends less than one lakh rupees in
an year                                             Five thousand rupees
2. A licensee who lends one lakh rupees or above but
less than five lakh rupees in an year
                                                          Ten thousand rupees
3. A licensee who lends five lakh rupees or above but
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 or
above, 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.

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