THE KERALA MONEY-LENDERS ACT, 1958

(Act 35 of 1958)

An ACT to provide for the regulation and control of the business of money-lenders in the State of
Kerala

Preamble:.― WHEREAS, it is expedient to provide for the regulation and control of the
business of money-lenders in the State of Kerala;

BE it enacted in the Ninth Year of the Republic of India as follows:―

1.​ Short title, extent and commencement.―(1) This Act may be called the Kerala
Money-lenders Act, 1958.

(2)​ It extends to the whole of the State of Kerala.

(3)​ It shall come into force in any area on such date as the Government may specify
by notification, the date being not earlier than one month from the date of the notification and the
Government may cancel or modify such notification.

2.​ Definitions.― In this Act, unless the context otherwise requires―

(1) “appellate authority” means any officer or authority appointed by the Government to
exercise the powers of an appellate authority under this Act;

(1A) “bank” means―

(i)​ a banking company to which the Banking Regulation Act, 1949 (Central Act 10
of 1949), applies;

(ii)​ The State Bank of India constituted under the State Bank of India Act, 1955
(Central Act 23 of 1955);

(iii)​ a subsidiary bank as defined in clause (k) of section 2 of the State Bank of India
(Subsidiary Banks) Act, 1959 (Central Act 38 of 1959);

(iv)​ the Industrial Development Bank of India established under the Industrial
Development Bank of India Act, 1964 (Central Act 18 of 1964);

(v)​ a corresponding new bank constituted under section 3 of the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1970 (Central Act 5 of 1970);

(vi)​ a Regional Rural Bank established under the Regional Rural Banks Act, 1976
(Central Act 21 of 1976);

(vii)​a corresponding new bank constituted under section 3 of the Banking Companies
 (Acquisition and Transfer of Undertakings)Act, 1980 (Central Act 40 of 1980);

(viii)​ the Export Import Bank of India established under the Export Import bank of
India Act, 1981 (Central Act 28 of 1981);

(ix)​ the National Bank for Agriculture and Rural Development established under the
National Bank for Agriculture and Rural Development Act, 1981 (Central Act 61
of 1981);

(x)​ the Industrial Reconstruction Bank of India established under the Industrial
Reconstruction Bank of India Act, 1984 (Central Act 62 of 1984);”;]

(1B) “Commissioner” means the Commissioner of Commercial Taxes appointed under

the provisions of the Kerala General Sales Tax Act, 1963 (Act 15 of 1963)”;]

(2)​ “co-operative society” means a society registered or deemed to be registered

under the Madras Co-operative Societies Act, 1932 [(Madras Act VI of 1932) or the Travancore-
Cochin Co-operative Societies Act, 1951(‘Act X of 1952)];

(3)​ “Interest” includes the return to be made over and above what was actually lent,
whether the same is charged or sought to be recovered specifically by way of interest or
otherwise, but does not include any sum charged by a lender in accordance with the provisions of
this Act or any other law for the time being in force, for or on account of costs, charges or
expenses;

(4)​ “licence” means a money-lender’s licence granted under this Act;

(4A) “licensing authority” means an officer or authority appointed by the Government

to perform the functions of a licensing authority under this Act;

(5)​ “loan” means an advance whether of money or in kind at interest, and includes
any transaction which the Court finds in substance to Amount to such an advance but does not
include―

(i)​ a deposit of money or other property in a Government Post Office Savings Bank
or in a bank, or in a company as defined in the Companies Act, 1956 (Central Act
I of 1956), or with a co-operative society;

(ii)​ an advance made to any loan floated by the Government of India or the
Government of any State;

(iii)​ an advance made by a bank or a Co-operative society or an advance made from a

provident fund to which the Provident Funds Act, 1925 (Central Act XIX of
1925) applies;

(iv)​ an advance made by the Government or by any person authorized by the

 Government to make advances in their behalf, or by any local authority;

(v)​ an advance made by any authority specified by the Government by notification in

the Gazette;

(vi) an advance made by a trader bona fide carrying on any business, other than money
lending, if such loan is advanced in the regular course of such business;

(vii) Omitted

(viii)​an advance made to its members by any Nidhi or Permanent Fund . [ “established
by or under an Act of Parliament or the Legislature of a State and sponsored by
the Central Government or the State Government or their agency, or by any
nationalised Bank”]

(ix)​ an advance made under any chit fund scheme or kuri or chitty;

(6)​ a person shall be deemed to “molest” another person if he―

(a)​ obstructs, or uses violence to, or intimidates, such other person, or

(b)​interferes with any property owned or used by him or deprives him of, or hinders
him in the use of any such property, or

(c)​ does any act calculated to annoy or intimidate the members of the family or such
other person;

(7)​ “money-lender” means a person whose main or subsidiary occupation is the

business of advancing and realising loans or acceptance of deposits in the course of such
business and includes any person appointed by him to be in charge of a branch office or branch
offices or a liaison office or any other office by whatever name called, of his principal place of
business and a pawn broker, but does not include―

(a)​ a bank or a co-operative society; or

(b)​ the Life insurance Corporation of India established​ under section 3 of the Life
Insurance Corporation Act, 1956 (Central Act 31 of 1956); or

(bb) the industrial Credit and Investment Corporation of India Limited incorporated
under the Indian Companies Act, 1913 (7 of 1913);

(c)​ the industrial Finance Corporation established under section 3 of the Industrial
Finance Corporation Act, 1948 (Central Act 15 of 1948)

(d) Omitted

(e)​ the State Financial Corporation established under section 3 of the State Financial
 Corporation Act, 1951 (Central Act 63 of 1951); or

(f)​ any institution established by or under an Act of Parliament or the Legislature of a

State, which grants any loan or advance in pursuance of the provisions of that Act,
or

(g)​ any institution in the public sector, whether incorporated or not exempted by the
Government by notification.

Explanation I.― Where a person, who carries on in the State of Kerala the Business of
advancing and realising loans is resident outside the State, the agent of such person resident in
the State shall be deemed to be the money-lender in respect of that business for the purposes of
this Act.

Explanation II.― For the purposes of this Clause (7A), proviso to sub-section (1) of section 3,
clause (a) of sub-section (3) of section10, [section 16B] and section 17, the word “person” shall
include “a firm or a joint family;”

(7A) “pawnbroker” means a person who carries on the business of taking goods and
chattels in pawn for a loan.

Explanation. ― Every person who keeps a shop for the purchase or sale of goods or chattels and
who purchases goods or chattels and pays or advances thereon any sum of money, with or under
any agreement or understanding expressed or implied that the goods or chattels may be
afterwards repurchased on any terms is a pawnbroker within the meaning of this clause;

(7B) “pawner” means a person delivering an article for pawn to a pawnbroker;

(7C) “pledge” means an article pawned with a pawnbroker;”; and

(8)​ “prescribed” means prescribed by rules made under this Act;

(9)​ “principal” in relation to a loan means the amount actually lent to the debtor. [“or
the pawner

(9A) “trader” means a person who in the regular course of business buys and sells goods
or other property, whether movable or immovable, and includes-

(a)​ a wholesale or retail merchant;

(b)​ a commission agent;

(c)​ a broker; and

(d)​ a manufacturer;

(10)​ “year” means the financial year.

3. Money-lender to obtain licence.― (1) From the date on which the provisions of this Act are
brought into force in any area, no person, firm or joint family or unincorporated association of
individuals shall commence or carry on or continue business as a money-lender at any place in
such area without a licence obtained under this Act or in contravention of the terms thereof:

Provided that nothing in this section shall be deemed to prohibit a person who has applied
for a licence to carry on or to continue business as a money-lender pending orders on his
application.

(2)​ Where a money-lender has more than one shop or place of business, whether in
the same town or village or in different towns or, villages he shall obtain a separate licence in
respect of each shop or place of business.

(3)​ (a) where a money-lender is a registered firm the licence shall be obtained in the
firm’s name.

(b)​ Where a money-lender is an undivided joint family, the licence shall be

obtained in the name of the manager or the karanavan or the yajaman, as the case may be,
described as such in the licence.

(c)​ Where a money-lender is any other association of individuals, not required

to be registered under the Indian Companies Act, 1956 (Central Act I of 1956), a separate licence
shall be obtained by each such individual in his name describing himself as a member of the
association:

4. Grant and refusal of licenses.― (1) Every application for a money-lender’s licence shall be
in writing and shall be made to the licensing authority and in the manner prescribed under this
Act:

Provided that a person under the age of eighteen years or a lunatic as defined in section 3
(5) of the Indian Lunacy Act, 1912 (Central Act IV of 1912) shall be eligible to apply for a
licence only through a guardian:

Provided further that if any person acting as a guardian on behalf of a minor or a lunatic
applies for, and obtains, a licence under this Act, such guardian shall be subject to all the
provisions of this Act as if the licence has been granted to himself.

(2) Every licence shall be granted in such form as may be prescribed and shall be subject
to the following conditions and to such other conditions as may be prescribed, namely:―

(i) payment of a licence fee of [1][six thousand rupees];

(ii) payment of security as provided in sub-section (2A).

1 Substituted as per Kerala Finance Act, 2013. The text before amendment was [Five thousand rupees]
 (iii) that deposits shall be accepted only in accordance with the provisions of the Reserve
Bank of India Act, 1934 (Central Act 2 of 1934), and at such rates of interest not
exceeding the rates fixed by the Reserve bank of India under the Non- banking
Financial Companies (Reserve Bank) Directions, 1977.

(2A) Every licensee specified in column (1) of the Table below shall, within such time
and in such manner as may be prescribed, deposit in the Government Treasury in respect of each
licence held by him, the amount specified in the corresponding entry in column (2) of the said
Table, by way of security for the due observance of the conditions of the licence.

Explanation.― For the removal of doubts, it is hereby declared that a money- lender whose
principal place of business is situate outside the State of Kerala and who has within the State of
Kerala a branch office or branch offices or a liaison office or any other office by whatever name
called, of his principal place of business shall be liable to deposit the security under this
sub-section in respect of such branch or each of the branches or liaison office or any other office,
as the case may be.
[2]
TABLE

(1) (2) (3)

1. A licensee who lends less than five lakhs rupees in an year Ten thousand rupees

2. A licensee who lends five lakh rupees or above, but less Seventy five thousand
than ten lakh rupees in an year rupees

3. A licensee who lends ten lakh rupees or above, but less than One lakh fifty thousand
twenty-five lakh rupees in an year rupees

4. A licensee who lends twenty-five lakh rupees or above, but Two lakh twenty five
less than fifty lakh rupees in an year thousand rupees

5. A licensee who lends fifty lakh rupees or above, in an year Three lakh rupees.

[3]
(2B) For the purposes of sub-section (2A), the amount lent by a licensee for the year for

2 Substituted as per Kerala Finance Act, 2015. The text before amendment was [See table]
3 Substituted as per Kerala Finance Act, 2015. The text before amendment was [(2B) For the purposes of sub-section (2A), the amount lent by a
licensee for the year for which the security is to be paid shall be deemed to be―
(a) the maximum aggregate loan amount outstanding on any day during the previous year; or
(b) the amount invested by the licensee including all deposits received by him during the previous year, if the maximum aggregate loan

amount outstanding is not ascertainable from his accounts;]

which the security is to be paid shall be deemed to be the aggregate amount lent by him during
the previous year:

Provided that in the case of a new licensee or a person who was a licensee only for a
portion of the preceding year, the amount of security shall be determined on the basis of a
declaration in the prescribed form as to the amount which he is likely to lend during the year,
filed before the licensing authority in the prescribed manner.

(2B) For the purposes of sub-section (2A), the amount lent by a licensee for the year for
which the security is to be paid shall be deemed to be―

(a)​ the maximum aggregate loan amount outstanding on any day during the previous
year; or

(b)​the amount invested by the licensee including all deposits received by him during
the previous year, if the maximum aggregate loan amount outstanding is not
ascertainable from his accounts;

(3) The licensing authority may by order in writing refuse to grant a licence if such
authority is satisfied―

(a)​ that the applicant has not complied with the provisions of this Act or the rules
made thereunder in respect of an application for the grant of a licence; or

(b)​that the applicant has made willful default in complying with or knowingly acted
in contravention of any requirement of this Act; or

(c)​ that the applicant has―

(i)​ knowingly participated in or connived at any fraud or dis- honesty in the

conduct of or in connection with the business of money-lending; or

(ii)​been found guilty of an offence under Chapter XVII or Chapter XVIII of the
Indian Penal Code (Central Act XLV of 1860); or

(iii)​been found guilty of an offence under section 11 or section 13.

(d)​that the application is made within six months of the cancellation of the licence

(4) Every order of the licensing authority under sub-section (3) shall be communicated to
the applicant in such manner as may be prescribed.

(4A) The licensing authority may, if it is satisfied that an applicant could not apply for a
licence under this Act, for reasons beyond his control within the period referred to in sub-section
(1)of section 3, grant a licence with retrospective effect on realizing a penalty not exceeding the
prescribed licence fee
 (5) Every licence granted under this Act shall, subject to the provisions of sub-section (7),
expire on the last day of the year in which it was granted.

(6) A licence granted under sub-section (2) may be renewed from year to year and the
provisions of sub-sections (1) to (5) shall apply in relation to the renewal of a licence as they
apply in relation to the grant of a licence.

(7) If orders refusing to renew a licence are not communicated to a money-lender by the
licensing authority before the expiry of his current licence, the money-lender shall,
not-withstanding such expiry, be deemed to have a valid licence till orders are received by him
on his application for renewal.

(8) Nothing in this section shall be deemed to disentitle a money-lender, whose licence
has expired or has not been renewed from taking steps to recover any loan advanced during the
period when the licence was in force.

5. Change of place of business by money-lender.― No money-lender shall change his place of

business without previous notice to the licensing authority and without having the address of the
new place of business duly endorsed on his licence.

6. Money-lenders to exhibit their names over shops.― Every money lender other than a
pawnbroker shall always keep exhibited over his shop or place of business his name with the
word “money lender” and its equivalent in the regional language and every pawnbroker shall
always keep exhibited over his shop or place or business his name with the word “pawnbroker”
and its equivalent regional language.”]

7. Interest and charges allowed to money-lenders.― [4][(1) No money-lender shall charge

interest on any loan at a rate exceeding eighteen per cent simple interest per annum and two
percent processing charge.]

Provided that a money-lender shall be entitled to charge a minimum of one rupee as

interest on any transaction.

Provided further that the Government may specify, by notification, the rate of interest
under sub-section (1) from time to time.

(2) A money-lender may demand and take from the debtor such charges and in such
cases, as may be prescribed.

(3) A money-lender shall not demand or take from the debtor any interest, in excess of
that payable under sub-section (1)

4 Substituted as per Kerala Finance Act, 2019. The text before amendment was [(1) No money-lender shall charge interest on any loan at a rate

exceeding two per cent above the maximum rate of interest charged by commercial banks on loans granted by them:]
 (4) No money-lender shall give any presents, gifts, commission or any amount other than
the interest provided in sub-section (2) of section 4 to any depositor in connection with the
deposits received by such money-lender or receive any presents, gifts, commission or any
amount other than the interest and other charges specified in this section from any person to
whom money is advanced.

8. Power to deposit in Court money due on loan.― (1) Where a money-lender refuses to accept
the whole or any portion of the money or other property due in respect of his loan, the debtor
may deposit the said money or property into the Court having jurisdiction to entertain a suit for
recovery of such loan and apply to the Court record full or part satisfaction of the loan, as the
case may be.

(2) Where any such application is made, the Court shall, after due inquiry, pass orders
recording full or part-satisfaction of the loan as the case may be.

(3) The procedure laid down in the Code of Civil Procedure 1908 (Central Act V of
1908), for the trial of suits shall, as far as may be, apply to applications under this section.

(4) An appeal shall lie from an order passed by a Court under sub-section (2) within thirty
days excluding the time for obtaining a certified copy of the order as if such an order relates to
the execution, discharge or satisfaction of a decree within the meaning of section 47 of the Code
of Civil Procedure, 1908 (Central Act V of1908)

9. Money-lender to keep books, give receipts etc.―(1) Every money- lender other than a
pawn-broker shall

(a)​ regularly record and maintain or cause to be recorded and maintained, an account
showing for each debt separately―

(i)​ the date of the loan, the amount of the principal of the loan and the rate of interest
charged on the loan; and

(ii)​ the amount of every payment received by the money-lender in respect of the loan,
and the date of such payment.

(b)​ give to the debtor or his agent a receipt for every amount paid by him, duly signed
and, if necessary, stamped at the time of such payment.

(c)​ on requisition in writing made by the debtor furnish to him, or, if he so requires, to
any person mentioned by him in that behalf in his requisition a statement of account
signed by himself or his agent, showing the particulars referred to in clause (a) and
also the amount which remains outstanding on account of the principal and of
interest and may charge such fee therefor as the Government may prescribe and;

(d)​ submit to the Inspector concerned such returns relating to the loans advanced by
 him, in such form and at such times as may be prescribed.

(2) All records or entries made in the books, accounts and documents referred to in
sub-section (1) shall be in such language or languages as may be prescribed in respect of any
area.

(3) A debtor to whom a statement of account has been furnished under clause (c) of
sub-section (1) and who fails to object to the correctness of the account shall not by such failure
alone be deemed to have admitted the correctness of such account.

(4) In the receipt to be given under clause (b) of sub-section (1) or in the statement of
account to be furnished under clause (c) of that sub-section the figures shall be entered only in
Arabic numerals.

(5) In any suit or proceeding relating to a loan if the court finds that a money-lender has
not maintained an account as required by clause (a) of sub-section (1), he shall not be allowed his
costs.

(6) If any money-lender [“other than a pawnbroker”] fails to give to the debtor or his
agent a receipt as required by clause (b) of sub-section (1) or to furnish on a requisition made
under clause (c) of that sub-section a statement of account as required therein within one month
after such requisition has been made, he shall not be entitled to any interest for the period of his
default, and shall be liable to a fine not exceeding two hundred and fifty rupees.

(7) Notwithstanding any agreement between the parties or any law for the time being in
force, when a statement is furnished to a debtor under this section on any day during a month, the
interest due shall be calculated as payable for the entire month irrespective of the fact that such
statement is furnished on any such day.

9A. Pawn –ticket to be given to the pawner.― Every pawnbroker shall, on taking a pledge in
pawn, give to the pawner a pawn-ticket in the prescribed form and shall not take a pledge in
pawn unless the pawner takes the pawn-ticket.

9B. Person producing pawn-ticket presumed to be entitled to redeem the pledge.― (1) The
holder for the time being of a pawn-ticket shall be presumed to be the person entitled to redeem
the pledge, and subject to the provisions of this Act, every pawnbroker shall, on payment of the
principal and interest, deliver the pledge to the person producing the pawn-ticket, and he is
hereby indemnified for so doing.

(2) Except as otherwise expressly provided in this Act, a pawnbroker shall not be bound
to deliver back a pledge unless the pawn-ticket for it is delivered to him.

9C. Protection of owners and of pawners not having pawn-tickets.― (1) The following
provisions shall have effect for the protection of owners of articles pawned, and of pawners not
having their pawn-tickets to produce:―
 (a)​ Any person claiming to be the owner of a pledge but not having the pawn-ticket, or
any person claiming to be entitled to hold a pawn-ticket, but alleging that the same
has been lost, mislaid, destroyed or stolen or fraudulently obtained from him, may
apply to the pawn-broker for a printed form of declaration (which shall be in the
prescribed form), which the pawnbroker shall deliver to him:

Provided that an application shall not be made under this clause where the loan
exceeds two hundred and fifty rupees unless the applicant has caused a public notice of
his claim, containing such particulars as may be prescribed to be published in the
prescribed manner for not less than the prescribed number of days before the date of the
application.

(b)​ If the applicant delivers back to the pawnbroker the declaration duly made before the
Magistrate or Judge by the applicant and by a person identifying him, the applicant
shall have, as between himself and the pawnbroker, all the rights and remedies as if
he had produced the pawn-ticket:

Provided that such a declaration shall not be effectual for that purpose―

(i)​ in cases where the loan exceeds two hundred and fifty rupees, unless the
applicant executes a bond with two sureties, to the satisfaction of the pawnbroker or
of such authority or person as may be prescribed in this behalf, agreeing to
indemnify the pawnbroker in respect of any liability which may be incurred by him
by reason of delivering the pledge or otherwise acting in conformity with the
declaration; and

(ii)​ in all cases, unless the declaration is duly made and delivered back to the
pawnbroker within such period after the delivery of the form to the applicant, as may
be prescribed.

(c)​ The pawnbroker is hereby indemnified for not delivering the pledge to any person
until expiration of the period aforesaid.

(d)​ The pawnbroker is hereby further indemnified for delivering the pledge or otherwise
acting in conformity with the declaration, unless he has had notice within the
meaning of the Transfer of Property Act, 1882, that the declaration was fraudulent or
was false in any material particular.

(2) Any person making a declaration under sub-section (1), either as an applicant, or as
identifying an applicant, knowing the same to be false in any material particular, shall be
punished with imprisonment for a term which may extend to six months or with fine which may
extend to one hundred rupees or with both.

9D. Pawnbrokers to keep books, give receipts, etc.― (1) Every pawnbroker shall―
 (a) regularly record and maintain or cause to be recorded and maintained in a
pledge book in the prescribed form, an account showing for each pawner separately―

(i)​ the date of the loan, the amount of the principal of the loan and the rate of
interest charged on the loan per cent per annum, per rupee per mensem and
per rupee per annum;

(ii)​ the amount of every payment received by the pawnbroker in respecst of the
loan, and the date of such payment;

(iii)​ a full and detailed description of the article or of each of the articles taken
in pawn;

(iv)​ the time agreed upon for the redemption of the pawn; and

(v)​ the name and address of the pawner, and where the pawner is not the owner
of the article or of any of the articles pawned, the name and address of the
owner thereof;

(b) keep and use in his business the following documents and books (which shall
be in the prescribed form) and enter therein from time to time, as occasion requires, in a fair and
legible manner such particulars and in accordance with such directions as may be prescribed:―

(i)​ pawn-ticket;

(ii)​ sale book of pledges;

(iii)​ declaration where pledge is claimed by owner;

(iv)​ declaration of pawn-ticket lost; and

(v)​ receipt on redemption of pledge;

(c) give to the pawner or his agent a receipt for every sum paid by him, duly
signed and, if necessary, stamped at the time of such payment;

(d) on requisition in writing made by the pawner, furnish to the pawner or, if he so
requires, to any person mentioned by him in that behalf in his requisition, a statement of account
signed by himself or his agent, showing the particulars referred to in clause (a) and also the
amount which remains outstanding on account of the principal and of interest, and charge such
sum as the Government may, prescribe as fee therefor; and

(e) submit to the Inspector concerned such returns relating to the deposits
accepted and the loans advanced by him, in such form and at such times, as may be prescribed

(2) All records or entries made in the books, accounts and documents referred to in
sub-section (1) shall be in such language or languages as may be prescribed in respect of any
area; and all such books, accounts and documents and all pledges taken by the pawnbroker shall
be open to inspection at any time by the licensing authority or by the Inspectors appointed under
section 10 or by any officer authorised in this behalf by the Government.

(3) Notwithstanding anything contained in the Indian Evidence Act, 1872, a copy of the
account referred to in clause (a) of sub-section (1), certified in such manner as may be prescribed
shall be admissible in evidence in the same manner and to the same extent as the original
account.

(4) A pawner to whom a statement of account has been furnished under clause (d) of
sub-section (1) and who fails to object to the correctness of the account shall not, by such failure
alone, be deemed to have admitted the correctness of such account.

(5) In the pawn-ticket furnished to the pawner, in the receipt given under clause (c) of
sub-section (1) and in the statement of accounts furnished under clause (d) of that sub-section,
the figures shall be entered only in Arabic numerals.

(6) If any pawnbroker fails to give to the pawner or his agent a receipt under clause (c) of
sub-section (1), he shall be liable to a fine not exceeding two hundred and fifty rupees.

9E. Redemption of pledge.― (1) Every pledge shall be redeemable within one year from the day
of pawning, exclusive of that day; and there shall be added to that year of redemption seven days
of grace within which every pledge (if not redeemed within the period of redemption) shall
continue to be redeemable.

(2) A pledge shall further continue to be redeemable until it is disposed of as provided in

this Act, although the period of redemption and days of grace have expired.

Explanation.― Where the contract between the parties provides a longer period for redemption
than one year, the provisions of subsections (1) and (2) of this section and sub-section (1) of
section 9F shall be read and construed as if references to such longer period had been substituted
for the references to the period of one year therein.

9F. Sale of pledge and inspection of sale book.― (1) A pledge may be disposed of by the
pawnbroker, after the expiry of one year and the days of grace provided in sub- section (1) of
section 9E by sale by auction and not otherwise, and the sale shall be conducted in accordance
with such rules as may be prescribed.

(2) A pawnbroker may bid for and purchase at a sale by public auction conducted under
sub-section (1), a pledge pawned with him; and on such purchase, he shall become the absolute
owner of the pledge.

(3) At any time within three years after the public auction, the holder of the pawn-ticket
may inspect the entry relating to the sale either in the pawnbroker’s book or in such catalogue of
the auction as may be prescribed.
 (4) (a) Where on such inspection or otherwise the pledge appears to have been sold for
more than the amount of the loan and the interest and charges due at the time of the sale, the
pawnbroker shall pay to the holder of the pawn-ticket, on demand made within three years after
the sale, the surplus after deducting therefrom the necessary costs and charges of the sale.

(b) If on such demand it appears that the sale of the pledge has resulted in a surplus
but that within twelve months before or after such sale, the sale of another pledge or pledges of
the same person has resulted in a deficit, the pawnbroker may set off the deficit, against the
surplus and shall be liable to pay only the balance, if any, after such set off.

9G. Liability of pawnbroker in case of theft or fire.― (1) Where a pledge is lost by theft or
destroyed or damaged by or in consequence of fire, the pawnbroker shall nevertheless be liable
on application made within the period during which the pledge would have been redeemable, to
pay the value of the pledge, after deducting the amount of the principal and interest.

(2) Every pawn broker shall, on taking a pledge in pawn, insure the pledge with him with
any company or corporation which is authorised by law for such insurance, for an amount not
less than the market value of such pledge.

Explanation.― For the purposes of this sub-section, the value of the pledge shall be its
estimated value, if any, entered in the pledge book at the time of the pawn together with interest
on the amount of the principal and shall in no case be less than the aggregate of the amount of
the principal and interest and twenty-five per cent on the amount of the principal.

9H. Compensation for depreciation of pledge.― If a person entitled and offering to redeem a
pledge shows to the satisfaction of a Civil Court having jurisdiction to entertain a suit for such
redemption that the pledge has become or has been rendered of less value than it was at the time
of pawning thereof by or through the default, neglect or willful misbehaviour of the pawnbroker,
the Court may, if it thinks fit, award reasonable compensation to the owner of the pledge in
respect of the damage, and the amount awarded shall be deducted from the amount payable to
the pawnbroker, or shall be paid by the pawnbroker, as the case requires, in such manner as the
Court directs”.

9I. Audit of accounts of money-lender.― (1) The accounts of every money- lender shall be
audited at least once in every year by a person who is a chartered accountant within the meaning
of the Chartered Accountants Act, 1949 (Central Act 38 of 1949), and the audit report shall be
submitted to such officer or authority and before such date as may be specified by the
Government in this behalf.

(2) If the audit report under sub-section (1) discloses any irregularity or any
contravention or non-compliance of the provisions of this Act or the rules made thereunder or of
any of the conditions of the licence, the officer or authority to whom such audit report is
submitted may, without prejudice to any other action that may be taken under any other provision
of this Act, by order in writing direct the money lender to take such action as may be specified in
the order within the time mentioned therein to remedy the irregularity or to take such steps
necessary to comply with the provisions of this Act or the rules made thereunder or of the
conditions of the licence.

10. Appointment of Inspectors and their powers.― (1) The Government or any authority or
officer empowered by them may, by notification inn the Gazette, appoint one or more persons
possessing such qualifications as may be prescribed to be Inspectors for the purposes of this Act
and specify in such notification the local limits of their jurisdiction.

(2) Every Inspector shall be deemed to be a public servant within the meaning of section
21 of the Indian Penal Code (Central Act XLV of 1860)

10A. Power to order production of accounts and powers of entry and inspection.― (1) Any
Inspector, Licensing Authority or Appellate Authority may, for the purpose of this Act, by notice,
require any money-lender,―

(a) to produce or cause to be produced before him any accounts, registers, records
or other documents; or

(b) to furnish or cause to be furnished any other information relating to his

business and such money-lender shall comply with such requisition.

(2) Any Inspector or Licensing Authority may, at any reasonable time with or without the
assistance of Police officers or other officers.

(a) enter any place of business or office of the money-lender; and

(b) inspect any cash, accounts, registers, records, safes, vaults, pledges or other
documents in such premises.

(3) If any officer referred to in this section has reason to believe that the money-lender
has violated any of the provisions of this Act or the rules made thereunder, he may, for reasons to
be recorded in writing, enter and search the place of business of the money-lender or any other
place which includes any godown, buildings, vessel, vehicle, box or receptacle where the
money-lender keeps or is reasonably believed to be keeping any accounts, registers, other
records, documents or pledges relating to his business:

Provided that no residential building or premises shall be entered or searched unless such
officer is specifically authorised in writing by the member, Board of Revenue in charge of taxes
to search that residential building or premises.

(4) All searches under this section shall, so far as may be, made in accordance with the
provisions of the Code of Criminal Procedure, 1973 (Central Act 2 of 1974).

(5) The officer making the inspection or search may seize such accounts, registers,
records, or other documents as he considers necessary and on such seizure shall, grant the
money-lender a receipt of the things seized.

(6) The accounts, registers, records or other documents seized under sub- section (5) shall
not be retained by the officer seizing them beyond a period of thirty days from the date of the
seizure, except with the permission of the next higher authority, unless they are required for any
prosecution under this Act.

(7) The power conferred by sub-sections (3) and (5) shall include,―

(a) the power to break-open any box or receptacle, safes, vaults or the door of any
premises in which any accounts, registers, records or pledges of the money- lender are kept or
reasonably suspected to be kept;

(b) the power to seal any box, receptacle, room or building where any accounts,
registers or other documents are kept or reasonably believed to be kept, and if the owner or any
other person in occupation leaves the premises or refuses to open the box, receptacle room or
building or is not available, then to break open such box, receptacle, room or building on
authorization in writing by the officer referred to in sub- section (3) of this section;

(c) the power to search any person who has got out of or is about to get into or is
in any place referred to in clause (a) or clause (b) of sub-section (2) of this section if the officer
has reason to suspect that such person has secreted about his person 0.

(d) Omitted

(e) Omitted

(f) any accounts, registers, records or other documents.

10B. Power to summon witnesses and cause production of documents.― (1) An Inspector,
Licensing Authority or Appellate Authority shall for the purposes of this Act, have all the powers
conferred on a Civil Court by the Code of Civil Procedure, 1908 (Central Act 5 of 1908), in
respect of the following matters, namely:―

(a) summoning and enforcing the attendance of any person and examining him on
oath or affirmation;

(b) compelling the production of any documents;

(c) impounding of any documents, accounts or other records produced for reasons
to be recorded in writing; and

(d) any other matter which may be prescribed.

 (2) The officer who impounds the documents, accounts or registers of the money-lender
shall grant a receipt of the things so impounded to the person who produced the same.

10C. Assistance of Police Officers.― Any officer authorised to inspect or search under section
10A may seek the assistance of the officer in charge of the Police Station having jurisdiction
over the area to be inspected or searched and thereupon, such officer of the Police Station shall
render all assistance necessary to the officer for the conduct of such inspection or search.”]

11. Money-lender advancing smaller amount or securing higher interest than that specified in
the accounts, etc., to be punishable.― (1) Any money-lender whether licensed or not―

(a) who actually advances an amount less than the amount shown in his accounts
or registers or other documents relating to the loan, or

(b) who takes or receives interest or any other charge at a rate higher than the rate
shown in the accounts, registers or documents aforesaid or allowed under this Act shall be
punished with imprisonment which may extended to six months or with fine which may extend
to [5][ten thousand rupees] or with both.

(2) If a money-lender is convicted of an offence under sub-section (1) the Court

convincing him may cancel his licence as a money-lender.

11A. Power to demand additional security.― (1) Notwithstanding anything contained in section
4, the Licensing Authority may demand from the money-lender additional security at any time, if
in the opinion of such authority there is excess of liabilities over the assets of the money-lender
at that time:

Provided that, while determining the excess of liabilities over assets, the security
furnished by the money-lender under sub-section (2A) of section 4 of this Act shall be treated as
assets of the money-lender:

Provided further that in respect of the loans advanced by the money-lender against
security in any form, the Licensing Authority shall have power to revalue or determine the
adequacy of the security or securities or revalue any assets for the purpose of determination of
excess of liabilities over the assets.

(2) The additional security to be furnished by the money-lender under sub- section (1)
shall be equal to the mount of such excess of liabilities over the assets.

(3) The additional security referred to in this section shall be furnished in any of the
following forms:―

(a) by deposit in the Government Treasury; or

5 Substituted as per Kerala Finance Act, 2015. The text before amendment was [one thousand rupees]
 (b) by deposit with such authority, of Government securities including National
Savings Certificates; or

(c) by deposit in Post Offices Savings Bank or Scheduled Bank or a Co-operative

Bank and pledging of the pass book thereof, with such authority; or

(d) by guarantee from a bank approved in this behalf by such authority agreeing to
pay to the State Government on demand, the amount, of such additional security; or

(e) by surety bonds from sureties acceptable to such authority, for the amount of
such additional security.

(4) The additional security furnished by the money-lender shall be retained till, in the
opinion of the Licensing Authority, there exists excess of liabilities over the assets of the
money-lender.

(5) The additional security retained under sub-section (4) shall be utilized for the
payment of the liabilities of the money-lender in connection with his business as money-lender,
at the time of the winding up of the business or cancellation of the license, as the case may be.

(6) Any money-lender from whom additional security is demanded under this section and
who carries on business without furnishing such security within thirty days of such demand, shall
be punishable with imprisonment which may extend to six months or with fine which may
extend to two thousand rupees or with both”.
[6]
[11B. Electronic filing and payment.- The Government may require the licensees to file returns,
forms and other statements, [7][including revised returns, forms and other statements] to be
submitted by him under this Act and make the payment of fee or other amounts due under this
Act, electronically through the official website of the Commercial taxes Department, in the
manner as may be prescribed.]

12. Cognizance of offences.― (1) Notwithstanding anything contained in the Code of Criminal
Procedure, 1973 (Central Act 2 of 1974), every offence punishable under section 13, section 17,
section 18A. or section 18B shall be cognizable.

(2) No court inferior to that of a Judicial Magistrate of the First Class shall try any
offence punishable under this Act.”.]

13. Penalty for molestation of debtor.― Whoever molests or abets the molestation of any debtor
for the recovery of any loan shall be punished with imprisonment which may extend to six

6 Inserted as per Kerala Finance Act, 2011

7 Inserted as per Kerala Finance Act, 2013.
months or with fine which may extend to [8][ten thousand rupees] or with both.

14. Power to cancel licence, etc.― (1) The licensing authority may, at any time, during the term
of any licence, cancel it by an order in writing―

(a) if the licensee caries on the business in contravention of any of the provisions
of the Act or the rules made thereunder or of the conditions of the licence, or

(b) if any reason for which the licensing authority could have refused to grant the
licence to the money-lender under sub-section (3) of section 4, is brought to the notice of that
authority after the grant of the licence, or

(c) if the licensee is convicted for an offence under section 9 or section 11 or

section 13 or

(cc) if the licensee carries on business without furnishing the security or

additional security as provided in this Act; or

(d) if the licensee maintains false accounts.

(2) Before canceling a licence under sub-section (1), the licensing authority shall give the
licensee a notice in writing stating the grounds on which it is proposed to take action and
requiring him to show cause against it within such time as may be specified in the notice.

(3) Every order of the licensing authority under this section shall be communicated to the
licensee in such manner as may be prescribed.

15. Publication of order of cancellation.― Every order of cancellation of a licence under this
Act shall be noticed in the Gazette and also on the notice board of the office of the licensing
authority.

16. No refund of licence fee when licence cancelled.― A person whose licence is cancelled
under section 14 shall not be entitled to the refund of any fee paid in respect of such licence [“or
for any compensation for such cancellation”]

16A. Forfeiture of security.― (1) The licensing authority may, at any time, by order in writing,
forfeit to the Government the whole or any portion of the security furnished under sub-section
(2A) of section 4,

(a) if the licensee carries on the business of money lending in contravention of

any of the provisions of this Act or the rules made thereunder or the conditions of the licence; or

(b) If the licensee is convicted of an offence under section 11 or section 13; or

8 Substituted as per Kerala Finance Act, 2015. The text before amendment was [one thousand rupees]
 (c) if the licensee maintains false accounts.

(2) Before forfeiting to the Government the whole or any portion of the security under
sub-section (1), the licensing authority shall give the licensee a notice in writing stating the
grounds on which it is proposed to take action and requiring him to show cause against it within
such time as may be specified in the notice.

(3) Every order of the licensing authority under this section shall be communicated to the
licensee in such manner as may be prescribed.”.]

16B. Appeals.― (1) Any person aggrieved by an order of the Licensing Authority under
sub-section (3) of section 4 or sub-section (1) of section 14 or sub- section (1) of section 16A or
by an order of the Inspector or the Licensing Authority under secstion11A or section 18C or
section 18D may, within thirty days from the date of communication of such order,appeal in such
manner as may be prescribed, to the Appellate Authority having jurisdiction over the area.

(1A) Every appeal under sub-section (1) shall be accompanied by a fee of [three hundred
rupees.

(2) The appellate authority may admit an appeal preferred after the period of thirty days
aforesaid if it is satisfied that the appellant had sufficient cause for not preferring the appeal
within the said period.

(3) The appellate authority may, after giving the appellant an opportunity of being heard,
pass such orders on the appeal as it may deem fit.

(4) Every order passed by the appellate authority shall be communicated to the appellant
and to the licensing authority in such manner as may be prescribed”.]

16C. Fees for filling Interlocutory Applications.― Every interlocutory application prescribed
by the Government and filed before the authorities under this Act specified below, other than
those filed by officers empowered by Government, shall be accompanied by the following fees,
namely:―

(a) before any Appellate Authority― one hundred and fifty rupees;

(b) before any Revisional Authority― One hundred and fifty rupees.

17. Penalty for carrying on business without licence or in violation of the conditions of
licence.― Whoever carries on the business of money lending without a licence or in violation of
the conditions of the licence or otherwise than in conformity with the terms and conditions of the
licence shall be punished with imprisonment for a term which, in the absence of special reasons
to be recorded in the judgement of the court, shall not be less than three months but which may
extend to three years and with fine which may extend to [9][five lakh rupees].

9 Substituted as per Kerala Finance Act, 2015. The text before amendment was [fifty thousand rupees]
18. Penalties.― (1) Whoever contravence any of the provisions of this Act or of any rule made
thereunder or of any terms or conditions of a licence granted or deemed to be granted thereunder
or makes a claim or a statement which is false or which he does not believe to be true shall, if no
other penalty is elsewhere provided for in this Act for such contravention, be punished with fine
which may extend to [10][twenty five thousand rupees].

Explanation.― The cancellation of a licence under section 14 shall not be deemed to be a

penalty for the purposes of this sub-section.

(2) Where a contravention of any of the provisions of this Act or of any rule made
thereunder of which a person is convicted consists of an omission to d a thing, the Magistrate
may when convicting the offender direct him to do the thing before an appointed day and may on
the failure of the offender to do the thing before the said day, pass an order, whether the offender
appears in court, or not on that day, canceling his licence.

18A. Certain acts of pawnbrokers to be punishable.― A Pawnbroker who―

(1) takes an article in pawn from any person appearing to be under the age of eighteen
years, or to be intoxicated; or

(2) purchases or takes in pawn or exchanges a pawn-ticket issued by another pawnbroker;

or

(3) employs any person under the age of eighteen years to take pledges in pawn; or

(4) under any pretence purchases, except at a public auction any pledge while in pawn
with him; or

(5) suffers any pledge while in pawn with him to be redeemed with a view to his
purchasing it; or

(6) makes any contract or agreement with any person pawning or offering to pawn any
article, or with the owner thereof, for the purchase, sale, or disposition thereof within the time of
redemption; or

(6A) takes from the pawner any power of attorney or any other document with blank
entries; or

(7) sells or otherwise disposes of any pledge pawned with him except at such time and in
such manner as is authorised by or under this Act,shall be punishable with imprisonment for a
term which may extend to six months or with fine which may extend to [11][five thousand rupees]
or with both.

18B. Certain acts of pawners to be punishable.― Any person who―

10 Substituted as per Kerala Finance Act, 2015. The text before amendment was [one thousand rupees]
11 Substituted as per Kerala Finance Act, 2015. The text before amendment was [five hundred rupees]
 (a) offers to a pawnbroker an article by way of pawn, being unable or refusing to
give a satisfactory account of the means by which he became possessed of the article; or

(b) willfully gives false information to a pawnbroker as to whether an article

offered by him in pawn to the pawnbroker is his own property or not, or as to his name and
address, or as to the name and address of the owner of the article; or

(c) not being entitled to redeem, and not having any colour of title by law to
redeem a pledge, attempts or endeavours to redeem the same, shall be punishable with
imprisonment for a term which may extend to six months or with fine which may extend to
[12]
[five thousand rupees] or with both.

(2) In every case falling under sub-section (1) and also in any case where, on an article
being offered in a pawn, for sale or otherwise, to a pawnbroker he reasonably suspects that is has
been stolen or otherwise illegally or clandestinely obtained, the pawnbroker shall, in the absence
of reasonable excuse, inquire into the name and address of the person concerned, and seize and
detain such person and the article, if any, and forthwith communicate to the nearest police station
the facts of the case and shall deliver the person and the article, if any, seized to the police.

(3) A list of properties believed to have been stolen may be delivered by the police to any
pawnbroker licensed under this Act and thereupon it shall be the duty of such pawnbroker―

(a) if any article answering the description of any of the properties set forth in any
such list is offered to him in pawn, for sale, or otherwise, to proceed in accordance with the
provisions of sub- section (2) ; and

(b) If any such article is already in his possession, forthwith to communicate to

the nearest police station the facts of the case (including full particulars as to the name and
address of the person concerned in the delivery of the article to the pawnbroker) and also, if so
required by the police, to deliver the article to them”.

18C. Imposition of penalty by Officers and Authorities.― (1) If the Inspector or the Licensing
authority is satisfied that any person,―

(a) being a person liable to take himself a licence under this Act, carries on the
business of money-lending without taking such licence; or

(b) has failed to keep true and complete accounts of the business; or

(c) has failed to submit any return or statement as required by the provisions of
this Act or the rules made thereunder; or

(d) has submitted an untrue or incorrect return or statement; or

(e) has acted in contravention of any of the provisions of this Act or the rules

12 Substituted as per Kerala Finance Act, 2015. The text before amendment was [five hundred rupees]
made thereunder, for the contravention of which, no express provision for payment of penalty or
for punishment is made by this Act:

Such Inspector or Authority may direct that such person shall pay, by way of penalty an amount
not exceeding [13][fifty thousand rupees].

Explanation.― The burden of proving that any person is not liable to the penalty under this
section shall be on such person.

(2) No order under sub-section (1) shall be passed unless the person on whom the penalty
proposed to be imposed is given an opportunity of being heard in the matter.

18D. Penalty for collection of interest in excess of the rate prescribed under section 7.― (1) If
the Inspector or the Licensing Authority is satisfied that any money- lender has received interest
in excess of the rate of interest specified in section 7 or any other charge in excess of the rate
fixed by the rules made under this Act, [“he may order forfeiture of the amount collected in
excess and”] direct that such money-lender shall pay by way of penalty and amount not
exceeding thrice the amount of interest or other charges so received:

Provided that in the case of interest or other charge collected at excess rate, [“no penalty
shall be imposed or forfeiture ordered”;] under this section, if the Inspector or the Licensing
authority is satisfied that the sum so collected has been refunded to the person from whom it was
collected.

(1A) The excess amount forfeited under sub-section (1) shall be refunded to the debtor in
such manner may be prescribed.

(2) No prosecution for an offence under this Act shall be instituted in respect of the same
facts on which a penalty has been imposed under this section.

18E. Composition of offences.― The Inspector or the Licensing Authority or other officer or
authority authorised by the Government in this behalf, may accept from the person who has
committed or is reasonably suspected of having committed an offence against this Act, by way of
composition of such offence,―

(a) a sum of money equal to the maximum amount prescribed a fine under this
Act, if the offence is committed for the first time; and

(b) in other cases, thrice such amount of fine prescribed under the respective
sections.

18F. Payment and recovery of penalty.― (1) The amount of penalty demanded under this Act
shall be paid in such manner and within such time as may be specified in the notice of demand;

(2) If any default is made in payment according to the notice of demand, the amount

13 Substituted as per Kerala Finance Act, 2015. The text before amendment was [twenty-five thousand rupees]
outstanding on the date of service of such notice shall be first charge on the properties of the
person or persons liable to pay the amount and shall be recoverable as arrears of land revenue.

18G. Liabilities of the money-lender for acts committed by his agents or employees.― Where
any agent or employee of the money-lender contravenes any of the provisions of this Act or of
any rule made thereunder, or of the terms and conditions of a licence granted or deemed to be
granted, whether with or without the knowledge of money-lender, the money-lender shall
without prejudice to the liability of the agent or the employee be liable for the penalty provided
under this Act as if the money-lender himself has committed such contravention.

18H. Security from the employees.― If any money-lender is desirous of obtaining security from
any person employed by him, during the period of his employment in connection with the
business of money-lending such security shall be taken only in any of the following form,
namely :―

(a) deposit of the amount in any treasury, nationalised bank, post office or
co-operative bank; or

(b) Government securities or National Savings Certificates, or

(c) mortgage of immovable property; or

(d) personal sureties:

Provided that if any security has already been received by the money lender from any of
his employees in any form other than those enumerated above, such security shall be converted
into any of the forms under items (a) to (d), within three months from the date of commencement
the Kerala Money-Lenders (Amendment) Ordinance, 1987.

19. Transfer of licence to heir.―(1) Where a licensee under this Act dies, any person claiming
to be his legal representative may apply to the licensing authority for transferring in his name the
licence standing in the name of the deceased.

(2) Every such application shall be in such form and shall contain such particulars as may
be prescribed.

(3) The licensing authority may, if he is satisfied that the applicant is in fact the legal
representative of the deceased and that he is otherwise eligible to a licence under this Act,
transfer the licence in the name of the applicant after obtaining from the applicant a declaration
in the prescribed form.

(4) Any licence transferred under sub-section (3) shall be deemed to have been granted to
the applicant himself and shall be valid for the period for which it would have been valid if the
licence had not been transferred, and the provisions of this Act shall apply accordingly.

20. Contracts not to be void on account of offence.― Where a money-lender is guilty of an

offence punishable under this Act any contract made by him in relation to his business of
money-lending shall not be void by reason only of that offence nor shall he, by reason only of
that offence, [“lose his lien on or right to the pledge or”] to the loan and the interest and other
charges, if any, payable in respect thereof.

20A. Power of revision by the Government.― (1) The [“Commissioner”] may suo motu or
otherwise, call for and examine any order passed by an Inspector, Licensing Authority or the
Appellate Authority and may make such enquiry or cause such enquiry to be made and subject to
the provisions of this Act, may pass such order thereon [“as the Commissioner thinks fit”:]

Provided that no order under this section adversely affecting a person shall be passed
unless that person has had a reasonable opportunity of being heard.

The Commissioner shall not pass any order under sub-section (1) if―

(a) the time for appeal against the order has not expired; or

(b) the order has been made the subject of an appeal to the Appellate Authority; or

(c) more than one year has expired after the passing of the order referred to
therein.

(1A) Every application for revision under sub-section (1) shall be in the prescribed form
and shall be accompanied by a fee of seven hundred rupees which shall, in no case, be refunded.

20AA. Persons entitled to appear before authorities.― (1) Any person entitled or required to
appear before any authority in connection with any proceedings under this Act, may be
represented before such authority,―

(a) by his relative or a person employed by him, if such relative or person is duly
authorised by him in writing in this behalf; or

(b) by a legal practitioner; or

(c) by a chartered accountant duly authorised by him in writing in this behalf; or

(d) by a sales tax practitioner duly authorised by him in writing in this behalf.

(2) The authorization referred to in sub-section (1) shall be in such form and
accompanied by such fee as may be prescribed.

20B. Court not to set aside or modify orders.― No suit or other proceedings shall, except as
expressly provided under this Act be instituted in any court to ser aside or modify any order
made under this Act or the rules made thereunder.

20C. Bar of certain proceedings.― (1) No suit, prosecution or other proceedings shall lie
against any officer or servant of the Government for any act done or purporting to be done under
this Act, without the previous sanction of the Government.
 (2) No officer or servant of the Government shall be liable in respect of any such act in
any civil or criminal proceedings, if the act was done in good faith in the course of the execution
of duties or the discharge of functions imposed by or under this Act.

21. Power to make rules.― (1) The Government may make rules to carry out all or any of the
purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such rules
may provide for―

(a) all matters expressly required or allowed by this Act to be prescsribed;

(b) the form and the particulars to be contained in an application for a licence
under this Act;

(c) the terms and conditions subject to which a licence may be granted;

(d) the form in which books, accounts and documents specified inthis Act shall be
recorded, maintained, kept or used;

(e) the procedure which should be followed and the powers which may be
exercised by the authorities exercising functions, holding inquiries and hearing appeals under
this Act.

(3) All rules made under this Act shall, as soon as possible after they are made be placed
before the Legislative Assembly and shall be subjects to such modifications by way of
amendments or repeal as the Assembly may make within fourteen days on which the Assembly
actually sits either in the same session or in more than one session.

22. Repeal.― The madras Pawnbrokers Act, 1943 (Madras Act XXIII of 1943) as in force in the
Malabar District referred to in sub-section (2) of section 5 of the States Reorganisation Act, 1956
(Central Act 37 of 1956), is hereby repealed.

Provided that any licence issued before the 1st day of March, 1964, under the Madras
Pawn Brokers Act, 1943 (Madras Act, XXIII of 1943), shall be deemed to be a licence validly
issued under the provisions of this Act.