Power to remove difficulty - Maharashtra Money-Lending (Regulation) Ordinance, 2014

(1) If any difficulty arises in giving effect to the provisions of this Ordinance, the State Government may, as occasion arises, by an order published in the Official Gazette, do anything not inconsistent with the provisions of this Ordinance, which appears to it to be necessary or expedient for the purpose of removing the difficulty.

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of the State Legislature.

56.(1) The Bombay Money-Lenders Act, 1946, is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the said Act (including any licence issued) shall be deemed to have been done, taken or issued, as the case may be under this Ordinance.STATEMENT

The harassment to the farmers-debtors at the hands of money-lenders,resulting in the frequent suicides by the farmers is a matter of great concern. The existing enactment on money-lending, namely the Bombay Money- Lenders Act, 1946 (Bom. XXXI of 1947) is found to be too inadequate to prevent the harassment to the farmers-debtors by the money-lenders. Various Committees appointed by the State Government to study the reasons for farmers’ suicides have submitted their reports, which, interalia, point out that harassment bymoney-lenders is a major reason for such suicides. With a view to effectively prevent the harassment of farmers-debtors at the hands of money-lenders, it had become expedient for the Government to make a new law to regulate the transactions of money-lending in the State by repealing the existing BombayMoney-Lenders Act, 1946 (Bom. XXXI of 1947).

2.Accordingly, the Maharashtra Money-Lending (Regulation) Bill, 2010 (L. A. Bill No. XLIX of 2010) was introduced and has been passed by both Houses of the State Legislature. The said Bill was forwarded to the Union Ministry of Home Affairs being nodal Ministry for the purpose and is under consideration for the Hon’ble President’s Assent. The Union Ministry of Finance (Department of Financial Services) through the Ministry of Home Affairs has made certain suggestions in respect of the definition clause of the said Bill to explicitly provide that the provisions of the said Bill shall not apply to the Non-Banking Financial Companies and the Reserve Bank of India regulated under the Reserve Bank of India Act, 1934, so also to the Co-operative Societies and the Co-operativeBanks regulated under the Banking Regulation Act, 1949 as well as to the Regional Rural Banks regulated under the Regional Rural Banks Act, 1976. Obviously, such institutions are governed by the Central laws made under the Union List. However, as insisted by the Union Home Ministry, on the recommendation of the Union Ministry of Finance,such explicit provisions have been incorporated. It is considered expedient to bring such law into force with immediate effect by promulgating an Ordinance.

3.As both Houses of the State Legislature are not in session and the Governor of Maharashtra is satisfied that, circumstances exist which render it necessary for him to make a law, for the purposes aforesaid, this Ordinance is promulgated.

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