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Keyword(s):
Daily Vatti, Debtor, Exorbitant Interest, Hourly Vatti, Kandhu Vatti, Loan, Meter Vatti, Money-Lenders Act, Thandal
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TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY 171
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The following Act o f the Tamil Nadu Legisiative Assembly received Governor on the 14th November 2003 and is hereby published for general
ACT No. 38 OF 2003. An Act to prohibit the charging of e.xorbitrmt interest by rrity person untl matters incidental titereto.
B E i t enacted by the Legislative Assembly o f the State o f Tam11 Nadu in the Fifty-fourth Year o f the Republic of India as follows:-
1. ( I ) This Act may be called the Tamil Nadu Prohibition o f Charging Exorbitant Interest Act, Short title,
2003. extent and commence- r ment. (2) I t extends to the whole o f the State of Tamil Nadu.
I (3) Itshall be deemed to have come into force on the 9th day ofJune 2003.
p 2. In this Act, unless the context otherwise requires,- Definitions.
(1) "daily vatti" means interest on daily basis which will work out to an interest rate more
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than that fixed by the Government under section 7 of the Money-lenders Act; I (2) "debtor" means a person who receives loan for exorbitant interest;
(3) "exorbitant interest" means and includes daily vatti, hourly vatti, kandhu vatti, meter vatti and thandal;
(4) "hourly vatti" means interest on hourly basis which will work out to an interest rate more than that fixed by the Government under section 7 o f the Money-lenders Act;
(5) "kandhu tatti" means an interest which will work out to an interest rate more than that - fixed by the Government under section 7 o f the Money-lenders Act;
(6) "loann means an advance o f money for daily vatti, hourly vatti, kandhu vatti, meter vatti or thandal;
(7) "meter vattin means an intenst which will work out to an interest rate more than that fixed by the Government under section 7 o f the Money-lenders Act, for every day on the loan
amount not paid within the stipulated time*
(8) "Money-lenders Act" means the Tamil Nadu Money-lenders Act, 1957;
(9) "thandal" means interest which will work out to an interest rate more than that fixed by the Government under section 7 ofthe Money-lenders Aa, which is to be collected daily along with the pan o f the loan amount;
(10) words and expressions used but not defined in this Act, shall have the meanings assigned to them in the Money-lenders Act.
3. No person shall charge exorbitant interest on any loan advanced by him.
4. Notwithstanding anything contained in the Money-lenden Act, whoever contravenes the provisions o f section 3 or molests or abets the molestation of any debtor for recovery of any loan shall be punishable with imprisonment for a term which may extend to three years and also with fine which may extend to thirty thousand rupees.
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5. ( 1 ) A debtorAmay deposit the money due in respect of loan received by him from any person together with interest at the rate fixed by thc Government under sectron 7 of thc Money-lendcrs Act, into the Court, having jurisdiction, along with a pctition to rccord that the amount deposited is in full or part, satisfaction of the loan rncluding the Interest therefor, as the casc niay be.
(2) 'The Court shall, on receipt ot'a petition under sub-section (I 1. refer a copy o f the petition to the person mentioned in the petition, directing him to give his version o f the casc w~thin a period o f fifteen djys as may be granted by thc CIourt. The Court may. afier due 1nqull.y a~ld aficr
Prohibition of charging
exorbitant interest.
Penalty.
Deposit of money andI presentation of
petition to Court and the procedure
thereof.
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Restoration of 6. The Court may, on filing a petttion by the dedtor, order the restoration of possession of possessionof property whether movable or ~mmovable, if any, forcibly taken by any person towards repayment of property. the loan advanced or rnterest therefor.
~djustmen't of 8. The Court may, on a petttion filed by the debtor for settlement of loan tncludlng the interest irlterest. therefor, pass an order for the adjustment of the tnterest, if any, paid by the debtor, over and above the rate of rnterest fixed by the Government under sectton 7 of the Money-lenders Act, towards the loan.
Abetment of 9. Where a debtor or any member of his famtly commrts surctde and rf it IS shown that I suicide. immediately prror to such surcrde, the debtor or any member of hts famlly was subjected to ! molestation by any person, the person who has advanced loan shall, unless the contrary 1s proved, be I deemed to have abetted the commrss~on of such su~crde.
Explat~czt~otl - For the purpose of this sectton, "member of famtly" means the spouse, I unmarried daughter or unmarrted son. I
I , Court fees. 10. Notwlthstandtng anything contamed in any other law for the tlme betng In force, the court i fce payable rn respect of a petrtton undcr thts Act shall be rllpecs one hundred. I Act not to be in I I . The provrsrons of sectlon 12 of the Money-lenders Act shall not apply In respect of offences under thls Act. The prov~sions of thts Act shall be in additton to and not in derogatton to k other laws. the provisions of any other law for the trme belng In force.
I Application of 12. Subject to the provisions of thrs Act, the provrsions of the Money-lenders Act, in so far provisions of as they are applicable to money-lenders shall t~lu~atrs nrtrtandrs apply to a person referred to In sectton Money-lenders 3 of this Act. Act.
Exp1anatron.-Where an act of a person constitutes offences under this Act and under
the Money-lenders Act, prosecution shall be launched under this Act.
Repeal atid 13. ( I ) The Tamil Nadu Prohibition of Charging Exorbitant Interest Ordinance, 2003 T~~IIN
Savlng. is hereby repealed.
to have been done or taken under this Act.
(By order of the Governor)
A. KRISHNANKUTTY NAIR,
Srcrr t l r~:~ to Gol.er.n~~renr, Ltrnq L)rptrr.fnzent.
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