The central legal point established in the judgment is that the act of advancing loans, not the residence of the debtor, is the essential element in determining the applicability of penal consequences under Section 41 of the Maharashtra Money-Lending (Regulation) Act, 2014.

JUDGMENT

Amit B. Borkar, J. - Heard.

2. Rule. Rule is made returnable forthwith.

3. By this application under Section 482 of the Code of Criminal Procedure, the applicant has challenged registration of the First Information Report No. 125/2018 dated 22.5.2018 registered with the non-applicant no.1 Police Station, at the instance of the non-applicant no.2.

4. The First Information Report came to be registered against the applicant with the allegation that the applicant had advanced loans to the persons, who are residing outside area of licence granted to the applicant. It is alleged that due to disbursement of loan to the persons outside area of licence, many farmers are denied benefit of loan waiver scheme of the State Government. With the said allegations, offence under Section 41 of the Maharashtra Money-Lending (Regulation) Act, 2014 (for short "the Act of 2014") was registered against the applicant.

5. The applicant, therefore, filed present application challenging registration of the First Information Report. This Court on 24.09.2019, issued notice to the non-applicants.

6. The non-applicant no.2 in pursuance of notice, filed reply and it is stated that the licence was issued to the applicant for the purpose of carrying money-lending business in Amravati district. Therefore, it was obligatory on the part of the applicant to carry on business of money-lending within the area of Anjangaon Surji Taluka. It is stated that the applicant advanced loan to borrowers who were not resident of Amravati district.

7. We have carefully considered the contents of the First Information Report. After meaningful scrutiny of the First Information Report, in our view, the point involved in the present application is, whether advancing of loans to the borrowers residing outside area of licence, can attract penal consequences as contemplated by Section 41 of the Act of 2014.

8. To address the question formulated by us and for better appreciation of the contentions urged by the learned Advocate appearing for the parties, it would be advantageous to reproduce the provisions of Section 2(3) of the Act of 2014, which defines expression, "business of money-lending" and the definition of "debtor" under Section 2(7) of the Act of 2014. The definition of "business of money-lending" in the Act of 2014, reads thus: "Section 2 (3) - "business of money-lending means the business of advancing loans whether in cash or kind and whether or not in connection with, or in addition to any other business."

9. The definition of "debtor" in the Act of 2014 reads thus:

"Section 2 (7) - "debtor" means a person to whom a loan is advanced whether in cash or kind and includes his successor in interest or surety".

10. Section 4 of the Act of 2014, which puts embargo on carrying on of the business of money-lending except in the area for which the money-lender has been granted a licence. Section 4 of the Act of 2014 reads as under:

"4. Money-lender not to carry on business of money-lending except for area under licence and except in accordance with terms of licence No money-lender shall carry on the business of money-lending except in the area for which he has been granted a licence and except in accordance with the terms and conditions of such licence."

11. The offence registered against the applicant is under Section 41 of the Act of 2014, which reads as under :

"41. Obtaining licence under fictitious name, carrying on money-lending at a place not mentioned in licence, etc. Whoever,-

(a) obtains a licence in the name which is not his true name or carries on the business of money-lending under the licence so obtained; or

(b) carries on the business of money-lending at any place not mentioned in the licence authorizing him to carrying on such business; or

(c) enters into any agreement in the course of business of money-lending without a valid licence, or under a licence obtained in the name which is not his true name, shall, on conviction, be punished,-

(i) for the first offence, with imp