The Madhya Pradesh Government has, in a Gazette notification dated 26th September, 2020, issued the Madhya Pradesh Moneylenders (Amendment) Act, 2020 (“Amendment Act”) to amend the Madhya Pradesh Moneylenders Act, 1934 (“Principal Act”).
Amendments introduced:
The Amendment Act has inserted two new provisions under the Principal Act as follows:
i. A new Section 2-B is introduced under the Principal Act which limits the interest chargeable by moneylenders. It states that a moneylender will not charge interest more than the rate notified by the State Government from time to time.
ii. The Section 11-FF is renumbered as Section 11-FFF and a new Section 11-FF is introduced which states that any loan advanced by an unregistered moneylender will not be recoverable in any court of law unless at the time of filing the suit the moneylender held an effective registration and the court is satisfied that the loans advanced were in compliance with the Principal Act.
Source: Madhya Pradesh Government
