Notifies on violations of Nagaland Money Lenders Act, 2005
Dimapur, Dec. 12 (EMN): The deputy commissioner of Kohima on Tuesday issued a stern warning to those who indulge in unauthorised practice of money lending in violation of various sections of the Nagaland Money Lenders Act 2005.
The DC stated that the district administration has been receiving complaints regarding lending money by un-licensed money lenders, charging exorbitant interest rates and cases of threat, intimidation and forceful seizure of moveable/immoveable properties which are violation of the Nagaland Money Lenders Act 2005, reported the DIPR.
As per Section 24 of the Nagaland Money Lenders Act 2005 whoever carries on money lending business without a license shall be punishable with imprisonment for a term which may extend to 6 months or with fine which may extend to INR 2500 or with both.
As per the relevant sub section of Section 7, no money lender can charge interests at a rate exceeding more than 3% above the prevailing average bank rates of interest on loans and that rate of interest shall be per annum simple interest on the principal amount of the loan. Under Section 16 (1) (b), any money lender whether licensed or not who receives interest higher than the rate prescribed under Section 7 or at the rate higher than the rate shown in the accounts shall be punishable with imprisonment for term which may exceed to one year or with fine which may extend to five thousand rupees or with both.
Any aggrieved person can file a money suit in respect of any offence like excess charge of interest, no proper maintenance of records, failure to keep full and detailed description of each of the articles taken in pawn by pawn broker.
In cases of criminal offence arising out of this act like 'threat, intimidation, assault, abduction, kidnap, forceful seizing of moveable/immoveable property etc.,’ a criminal complaint can be lodged under section 20 of the said act before a competent authority.
