Money Lending

Yes. A simple and single loan transaction does not attract the provisions of Money Lending Act. The provisions of the Act are clear. If I get judgment of Bombay HC I shall post here.

 Dear Sir,

I thank you for you reply. The company is a NBFC engaged in the business of advancing loans regularly. The RBI has also stated that such companies have to obtain permisson from "local" authorities i.e. under State laws to carry on the business.

Anil

 Please read he last para. The RBI has clearly stated that even such companies are governed by the State laws unless exempted by the State Government specifically.

Before the State Information Commission, Maharashtra – Complaint

under Section 18 of RTI Act, 2005.

Complaint No.2007/236/02

Shri Kewal Semlani, 52, Jolly Maker Chambers No.2, Nariman Point, Mumbai 400 021.

... Complainant

PIO & Dist. Dy. Registrar of Coop Societies Mumbai (1), Mumbai City, Malhotra House, Mumbai 400 001.                                                                                             

... Respondent

GROUNDS

Mr. Kewal Semlani of Mumbai had given application to the PIO and Deputy Registrar of Coop. Societies, Mumbai City (1), Mumbai on 2.8.2007 seeking the following information:

“ (i) Exemptions under Bombay Money Lenders Act 1946 to Citifinancial Consumer Finance India Ltd. (CCFIL) Mumbai;

(ii) The period to which the information relates: 1.4.2004 till the date of providing information;

(iii) Description of the information required: Certified true copies of:

a) Specific provisions of Bombay Money Lenders Act 1946 under which CCFIL are exempted from Bombay Money Lenders Act, 1946;

b) Details of all other Complaints, except those holding banking licence from RBI, which are exempted from Bombay Money Lenders Act – 1946 because of permission obtained by them from RBI for carrying on business in Maharashtra

c) Any other information, relevant to the above;

d) The information should be provided in print format as well as in e-format (CD) if available.”

He received reply on 9.8.2007 that the information sought in his application does not come under the definition of the information, therefore, his application is filed. Being aggrieved by this, he has complained to this Commission u/s 18 of the Act on 21.8.2007. Taking into consideration the public interest involved in this complaint it was heard on priority on 18.9.2007 when Shri Kewal Semlani,

Complainant and Mr. Patil, Dy. Registrar was present. After hearing both the parties it transpired that District Deputy Registrar seem to be of the view that since the said complaint - Citifinancial Consumer Finance India Ltd. (CCFIL) has got licence from RBI they come under the control of RBI , therefore, there is no question of taking any action under Mumbai Money Lenders’ Control Act, 1946 and this was informed by them by letter dt. 10.7.2007, based upon which the application under RTI Act, 2005 was done. Mr. Semlani produced a copy of letter he received from RBI dt. 13.8.2007, stating that even such companies are not exempt from the State laws unless the State Government has specifically exempted them. The Deputy Registrar promised that in view of the letter from RBI he will re-examine the matter and provide the information asked by the Complainant early. This position was accepted by the Complainant, Mr. Semlani, therefore, the complaint application is disposed off.

ORDER

Complaint application is thus disposed off.

(Dr. Suresh V. Joshi)

Chief Information Commissioner

Place: Mumbai.

Date: 19.9.2007

I do agree with the reply of my ld. friend

hi,

first of all i would like to thanks for ur website which helping us and guide us very properly and we got what we want but one question i would like to ask you might be it is repeated but i had searched everywhere in search engine but still i couldnot get the right way to what is the procedure of obtaining money lender license, kindly dont ignor my question if repeated , i am from mumbai andheri west and willing to get the money lender license.

i hope you will guide me properly.

best regards

siraaj shaiikh