AI Overview...
- Karnataka Prohibition of Charging Exorbitant Interest Act, 2004 - Main points and insights:
- Enacted to prevent lenders from charging exorbitant interest rates, especially targeting illegal money lending practices Puttaswamy Gowda S/o Late Ningappa VS State of Karnataka By Sub-inspector of Police Channarayapttana Town Police Station Channarayapattana - Karnataka, MANNAPURAM FINANCE LIMTIED v/s STATE OF KARNATAKA - Karnataka, SRI. MANJUNATHA K.K vs THE STATE OF KARNATAKA - Karnataka.
- Sections 3 and 4 of the Act define and prohibit charging interest beyond prescribed limits; violations can lead to criminal proceedings under IPC Sections 420, 406, etc. Puttaswamy Gowda S/o Late Ningappa VS State of Karnataka By Sub-inspector of Police Channarayapttana Town Police Station Channarayapattana - Karnataka, SRI. MANJUNATHA K.K vs THE STATE OF KARNATAKA - Karnataka, Babulal Parashurampura VS State - Karnataka.
- The Act works alongside the Karnataka Money Lenders Act, 1961, regulating licensed money lending and interest rates MANNAPURAM FINANCE LIMTIED v/s STATE OF KARNATAKA - Karnataka, BRANCH MANAGER MANAPPURAM FINANCE LIMITED vs STATE OF KARNATAKA - Karnataka.
- Courts have used the Act to quash FIRs and criminal charges against lenders accused of charging exorbitant interest, emphasizing the importance of public interest and proper investigation SRI. MANJUNATHA K.K vs THE STATE OF KARNATAKA - Karnataka, SRI. MANJUNATHA. K v/s STATE OF KARNATAKA - Karnataka, Babulal Parashurampura VS State - Karnataka.
- The Act is challenged in some cases as being inconsistent with the RBI Act and other central laws, with petitions seeking declarations that certain state laws do not apply to specific entities MANAPURAM FINANCE LIMITED vs STATE OF KARNATAKA - Karnataka, BRANCH MANAGER MANAPPURAM FINANCE LIMITED vs STATE OF KARNATAKA - Karnataka.
- Analysis and Conclusion:
- The Karnataka Prohibition of Charging Exorbitant Interest Act, 2004, primarily aims to curb illegal lending practices by setting maximum interest limits and penalizing violations.
- It operates in conjunction with the Karnataka Money Lenders Act, 1961, and is enforceable through criminal proceedings.
- Judicial rulings have balanced enforcement with protecting lenders from false accusations, often quashing FIRs where allegations lack sufficient evidence.
- There are ongoing legal debates about the applicability of state laws versus central laws like the RBI Act, affecting the scope of enforcement.
- Overall, the Act plays a crucial role in regulating interest charges and preventing usurious lending in Karnataka.
References: - Puttaswamy Gowda S/o Late Ningappa VS State of Karnataka By Sub-inspector of Police Channarayapttana Town Police Station Channarayapattana - Karnataka - MANNAPURAM FINANCE LIMTIED v/s STATE OF KARNATAKA - Karnataka - SRI. MANJUNATHA K.K vs THE STATE OF KARNATAKA - Karnataka - Babulal Parashurampura VS State - Karnataka - MANAPURAM FINANCE LIMITED vs STATE OF KARNATAKA - Karnataka - BRANCH MANAGER MANAPPURAM FINANCE LIMITED vs STATE OF KARNATAKA - Karnataka - SRI. MANJUNATHA. K v/s STATE OF KARNATAKA - Karnataka
Search Results for "Karnataka Prohibition of Charging Exorbitant Interest Act"
2019 0 Supreme(Kar) 2094 • India - Karnataka
ARAVIND KUMAR
Exorbitant Interest Act, 2004 - Section 5 - Karnataka Police Act - Section 81(2) - Karnataka Prohibition ... of Charging Exorbitant Interest Act, 2004 - Sections 3 & 4 – Indian Penal Code - Section 420 – Criminal Procedure Code - Section ... alleging that petitioner had charged exorbitant interest initiation of prosecution against petitioner on basis of a police....
2025 Supreme(Online)(KAR) 2851 • India - High Court of Karnataka
S.R.KRISHNA KUMAR, J
Karnataka Money Lenders Act , 1961 as well as Section 28 of the Karnataka Prohibition of Charging Exorbitant Interest Act , 2004. Karnataka Money Lenders Act , 1961 and section 28 of Karnataka Prohibition of Charging Exorbitant Interest Act , 2004; pending in the file of Civil Judge (Jr.Dn) & JMFC-2 Court....
2025 Supreme(Online)(Kar) 22021 • India - Karnataka High Court
SACHIN SHANKAR MAGADUM, J
(A) Karnataka Prohibition of Charging Exorbitant Interest Act, 2004 - Sections 3 and 4 - Criminal procedure - Quashing of FIR - Accused ... were false and motivated - Court found sufficient material requiring further investigation, emphasizing public interest in preventing ... charged for lending money at exorbitant rates, alleged to have misused cheques obtained from borrowers - Petitioner contended allegations ... Prohibition of #....
2014 0 Supreme(Kar) 1044 • India - Karnataka
ANAND BYRAREDDY
3 and 4 of Karnataka Prohibition of Charging Exorbitant Interest Act, 2004 and Sections 171E, 188, 420 and 489C of Indian Penal ... KARNATAKA MONEY LENDERS ACT, 1961 - Sections 5 & 39: [Anand Byrareddy, J] Grant of anticipatory bail - Allegations under Sections ... The same were taken into custody and the Police have initiated proceedings alleging offences under various provisions of law including the Karnataka Money Lenders #HL_STA....
2025 Supreme(Online)(Kar) 29169 • India - Karnataka High Court
S.R. KRISHNA KUMAR, J
Reserve Bank of India Act, 1934 , (for short ‘the RBI Act’) and regulated by RBI are before this Court praying for a declaration to declare that the State Enactments i.e., the Karnataka Prohibition of Charging Exorbitant Interest Act, 2004 (for short ‘the 2004 Act’Karnataka Money-Lenders Act, 1961 (for short ‘the 1961 Act’), are not applicable to the petitioners and also to quash....
2021 0 Supreme(Kar) 12 • India - Karnataka
H.P.SANDESH
ORDER : This petition is filed under section 482 of Cr.P.C praying this court to quash the FIR in Cr.No.195/2020 on the file of IV Additional CMM, Bengaluru, for the offences punishable under sections 420, 406, 409 and 384 of IPC, sections 38, 39, 40, 5 of the Karnataka ... They were further misled into executing bogus rent agreements during the same period, to secure in favour of the accused the 2% per monthly interest amount ostensibly payable as rent initially for 11 months which agreements would extend indefinitely, till the principal amount is not pai....
2025 Supreme(Online)(KAR) 829 • India - High Court of Karnataka
S.R. KRISHNA KUMAR, J
Reserve Bank of India Act , 1934, (for short ‘the RBI Act’) and regulated by RBI are before this Court praying for a declaration to declare that the State Enactments i.e., the Karnataka Prohibition of Charging Exorbitant Interest Act , 2004 (for short ‘the 2004 Act’ ... ), and the Karnataka Money-Lenders Act, 1961 (for short ‘the 1961 Act’), are not applicable to the petitioners ....
2025 Supreme(Online)(KAR) 10732 • India - High Court of Karnataka
MR JUSTICE HEMANT CHANDANGOUDAR, J
(A) Indian Penal Code, 1860 - Section 420 - Karnataka Money Lenders Act, 1961 - Section 39 - Karnataka Prohibition of Charging Exorbitant ... Interest Act, 2004 - Quashing of FIRs - Petitioners accused of lending money without a license and charging exorbitant interest ... exorbitant interest, leading to multiple FIRs against them. ... The petitioners in all the....
2014 0 Supreme(Kar) 332 • India - Karnataka
ANAND BYRAREDDY
Money Lenders Act, the Karnataka Prohibition of Charging Exorbitant Interest Act, the Prevention of Money Laundering Act, and the ... seizure of a large amount of cash, shares, and other materials, leading to allegations under various provisions of law including the Karnataka ... The same were taken into custody and the Police have initiated proceedings alleging offences under various provisions of law including the Karnat....
2025 Supreme(Online)(Kar) 22416 • India - Karnataka High Court
SACHIN SHANKAR MAGADUM, J
Exorbitant Interest Act. ... No. 60871/2024 filed against the petitioners under Section 420 of the IPC and Section 4 of the Karnataka Prohibition of Charging
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