Amendment status not verified — confirm the current text below against the official source.
Repeal and Savings * * * * I STATEMENT OF OBJECTS AND REASONS Act 14 of 2004: It is considered necessary to prohibit the charging of exorbitant interest by any person, in order to obviate the difficulties experienced by the public particularly farmere who are falling prey to the people charging exorbitant interest on the loans. Therefore, it has been decided to prohibit lending money at such an exorbitant interest and to provide for stringent punishment thereof. The Bill among other things provides for the following:- i) prohibition of charging exorbitant interest by a money lender; ii) penalty for charging exorbitant interest and for molesting or abetting molestation of any debtor for recovery of loan; iii) provisions for filling petition to a court by a debtor to seek order recording satisfaction of loan and interest; iv) voluntary disclosure by a person charging exorbitant interest by filling a petition to the court disclosing his intention to charge only the rate fixed by the Government under sectiion 28 of the Karntaka Money Lenders Act, 1961; v) adjustment of interest The farmers in the State are in great difficulty and cases of their suicide on the ground of indebtedness are being reported daily. It is mainly due to severe draught prevailing in the State for the third successive year. Since the matter was urgent and as both the Houses of the State Legislature are not in session, the Karnataka Prohibition of Charging Exorbitant Interest Ordinance, 2003 (Karnataka Ordinance 6 of 2003) was promulgated to achieve the above object. This Bill seeks to replace the said Ordinance. Hence the Bill. (Obtained from LA Bill No. 14 of 2004 vide File No. SAMVYASHAE 55 SHASANA 2003) II Amendment Act 17 of 2025:- It is considered necessary to amend the Karnataka Prohibition of Charging Exorbitant Interest Act, 2004 (Karnataka Act 14 of 2004) to protect economically vulnerable groups and individuals from the undue hardship usurious interests rates and coercive means of recovery by licensed pawn brokers and unlicensed pawn brokers. Hence, the Bill [L.A. Bill No. 03 of 2025, File No. SAMVYASHAE 06 SHASANA 2025] [Entry 30 of List II of the Seventh Schedule to the Constitution of India.] [Published in Karnataka Gazette Extra-ordinary No.189 in part-IVA dated: 25.03.2025] * * * * KARNATAKA ACT NO. 14 OF 2004 (First published in the Karnataka Gazette Extra-ordinary on the Sixth day of March, 2004) THE KARNATAKA PROHIBITION OF CHARGING EXORBITANT INTEREST ACT, 2004 (Received the assent of the Governor on the Fourth day of March, 2004) (As amended by Karnataka Act 17 of 2025) An Act to prohibit the charging of exorbitant interest by any person and matters incidental thereto. Whereas, in order to obviate the difficulties experienced by the public at large who are falling prey to persons charging exorbitant interest, it is considered necessary to prohibit lending money for such exorbitant interest and to provide for stringent punishment thereof and for the purposes hereinafter appearing; Be it enacted by the Karnataka State Legislature in the Fifty fifth year of the Republic of India as follows;-