In the Circular it is noted that as per S.51 of the Motor Vehicles Act, entries have been made in the RC Books in the usual course with regard to the vehicle owners who have purchased the vehicles on obtaining loan/financial assistance from nationalized banks and other financial institutions, However, it is also expressed that some transport financiers and also private financiers are extracting more interest and thus deceiving the vehicle owners. Referring to the provisions of the Money Lenders Act, 1961 and the Rules therein and also based on the letter of the Government dated 14.6.2010, the Commissioner for Transport has issued the Circular to various Regional Transport Officers directing the registering authorities to cross-check private financiers whether they are registered under the Karnataka Money Lenders Act and also whether they are charging interest in excess of the limit prescribed under the Exorbitant Interest Act on the money lent for the purchase of the vehicle and, only after securing the necessary documents in this regard, to make entry of the name of the financier in the RC Book, meticulously.

On the ground that the Circular dated 6.9.2010 issued by the Tr