State Act

The Telangana Money Lenders Act, 1349 Fasli.

2-A. (1) No money-lender who is a stranger shall carry on the business of money-lending from 18th Khurdad 1355 F. (2) All licences granted under this Act to the money-lenders referred to in sub-section (1) shall be deemed to have been cancelled from 18th Khurdad 1355 F; and all transactions of money-lending carried on by such persons as money-lenders shall cease from the said date. Such money-lenders shall not be entitled to refund of licence fee or to compensation on account of cancellation of licences. (3) The money-lenders referred to in sub-section (1) who had obtained licences of money-lending under this Act prior to the 18th day of Khurdad 1355 F. may, under the provisions of this Act, recover through a competent court the loans advanced before the said date. (4) Any money-lender referred to in sub-section (1) who carries on the business of money-lending in contravention of the provisions of the said sub-section, or recovers his dues otherwise than in accordance with the provisions of sub-section (3) he shall, on conviction before the 6[Collector], be punished with imprisonment for a term which may extend to one year, or with fine or with both. An appeal from the order of the 6[Collector] shall lie to the Sessions Judge. (5) An offence under this section shall be cognizable and bailable and the Court trying the offence shall, unless it is proved to the contrary, presume that the accused is a stranger and that he was carrying on the business of money-lending in contravention of the provisions of this section.