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Repeal. STATEMENT OF OBJECTS AND REASONS I Act 13 of 1962.—The Madras Pawnbrokers Act, 1943 is in force in the Madras Area, Pawnbrokers in other areas are regulated by the existing Money-Lenders Acts in force in the respective areas. After a careful consideration, it was, however, noticed that provisions to be made for pawnbrokers are not the same as those for money-lenders and hence, it has been considered desirable to enact a separate legislation for regulation and control of pawnbrokers in this State. Hence this Bill. (Obtained from L.C. No. 3221 dated 21st March, 1959. Published in PART IV-2-A at page 141.) II Amending Act 29 of 1979.—The Karnataka Pawnbrokers Act 1961, which was brought into force from 29th day of March, 1962 has revealed in the course of 3 working that certain Pawnbrokers are in the habit of pledging with Commercial Banks the articles pledged with them for securing monetary accommodation and that the money so taken is being utilised by them in their money lending transactions for which high rate of interest are being charged. It has become, therefore necessary to amend the relevant provision of the Act, so that the said practice adopted by the Pawnbrokers could be brought within the purview of the provisions of the Act. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary) Part IV-2A, dated 3rd February 1979 at page. 5.) III Amending Act 40 of 1985.—Persons who obtain credit from the licensed Pawn Brokers, pledge costly gold ornaments and other articles. It is considered necessary to insist security deposit from such licensed Pawn Brokers to safeguard the interests of the Pawners. In order to meet the increasing cost of administration of the Act, it is also proposed to increase the license fee. As the matter was very urgent, the Karnataka Pawn Brokers (Amendment Ordinance, 1985 (Karnataka Ordinance No. 12 of 1985) was issued. This Bill seeks to replace the said Ordinance. (Published in the Karnataka Gazette (Extraordinary) Part IV-2A, dated 25th July 1985 as No. 398 at page 6.) IV Amending Act 9 of 1998.—It is considered necessary to amend the Karnataka pawn Brokers Act, 1961 (Karnataka Act 13 of 1962), for the following reasons, namely:— (i) To enhance the duration of licence from one year to five years; (ii) To provide for calculating the amount of security deposit on the amounts invested and not on the amounts lent. 4 (iii) Since, the Karnataka High Court in writ petition No. 8912/85 and other connected matters directed the Government to pay interest on security deposit, as there is no specific provision prohibiting payment of interest, appropriate provisions are made to remove the lacuna retrospectively from 31st May 1985 and to validate the section. Hence the Bill. (Published in the Karnataka Gazette (Extraordinary) Part IV-2A, dated 2nd September 1997 as No. 990 at page. 4.) V Amending Act 11 of 2016.- It is considered necessary to amend the Karnataka Pawn Brokers Act, 1961 (Karnataka Act No 13 of 1962) to,- (i) simplify the licensing process for Pawn Broking and to avoid dual license. (ii) revise the minimum value for auction of pledged pawn or articles according to present money value. Hence, the Bill. [L.A. Bill No.06 of 2016, File No. Samvyashae 10 Shasana 2016] [entry 30 of List II of the Seventh Schedule to the Constitution of India.] VI Amendment Act 18 of 2025:- It is considered necessary to amend the Karnataka Pawn Brokers Act, 1961 (Karnataka Act No 13 of 1962) to protect economically vulnerable groups and individuals from the undue hardship usurious interests rates and coercive means of recovery by licensed money lender and unlicensed money lender. Hence, the Bill [L.A. Bill No. 02 of 2025, File No. SAMVYASHAE 07 SHASANA 2025] [Entry 30 of List II of the Seventh Schedule to the Constitution of India.] [Published in Karnataka Gazette Extra-ordinary No.190 in part-IVA dated: 25.03.2025] 5 1[KARNATAKA ACT]1 No. 13 OF 1962 (First published in the 1[Karnataka Gazette]1 on the Twenty-ninth day of March, 1962.) THE 1[KARNATAKA]1 PAWNBROKERS ACT, 1961. (Received the assent of the President on the Eighth day of March, 1962) (As amended by Karnataka Acts 29 of 1979, 40 of 1985, 9 of 1998, 11 of 2016 and 18 of 2025) An Act to regulate and control the business of Pawnbrokers in the 1[State of Karnataka]1. WHEREAS it is expedient to make provision for the regulation and control of the business of pawnbrokers in the 1[State of Karnataka]1; BE it enacted by the 1[Karnataka State]1 Legislature in the Twelfth Year of the Republic of India as follows:—