Synopsis

The petitioners were accused of carrying on money‑lending business without a valid licence. They had advanced loans to several farmers (the respondents) in 2009 at 3% interest, and instead of executing mortgage deeds, they took nominal sale deeds of agricultural land as security. When the borrowers repaid the loans, the petitioners refused to execute reconveyance deeds. The borrowers filed complaints under Section 18 of the Maharashtra Money Lending (Regulation) Act, 2014 before the District Deputy Registrar. After inspection under Section 16, the authorities seized numerous documents including sale deeds, bond papers, bank passbooks, and cheques. The District Deputy Registrar allowed the complaints, and the orders were upheld by the Divisional Joint Registrar and the Registrar General. The petitioners challenged these orders before the High Court arguing that the procedure under Section 15 was not followed and that the sale deeds were independent transactions. The Bombay High Court dismissed the petitions, holding that the authorities have power to inquire into transactions of the last 15 years, and that the seizure of documents proved unlicensed money‑lending. The court rejected the procedural objection because notices were issued and the petitioners were heard.

Court: High Court of Judicature at Bombay, Aurangabad Bench

Coram: Hon’ble Mr. Justice Siddheshwar S. Thombre (Single Judge)

Date of Judgment: 15th April, 2026

Citation: Writ Petition Nos. … of 2026 (unreported) – (multiple petitions clubbed)

Core Law: Maharashtra Money Lending (Regulation) Act, 2014 – Sections 4, 15, 16, 18, 39; Bombay Money-Lenders Act, 1946 (repealed in effect)

1. Heading of the judgment

High court of judicature at bombay aurangabad bench

Writ petition no. . . . of 2026 (clubbed petitions)

Chintaman narayan raut and others (petitioners) vs. Latabai balu khandale and others (respondents)

Coram: hon’ble mr. justice siddheshwar s. thombre

Reserved on: not specified; pronounced on: 15th april, 2026

2. Legal framework

Major laws and provisions involved:

Maharashtra money lending (regulation) act, 2014 – section 2(3) (business of money‑lending), section 2(7) (debtor), section 2(9) (interest), section 2(11) (licence), section 2(13) (loan), section 2(14) (money‑lender), section 4 (licence mandatory), section 15 (powers of authority – summoning, production, commissions), section 16 (power to require production of records / documents and search without warrant), section 17 (disposal of pledged property), section 18 (order for return of immovable property acquired in money‑lending transaction within 15 years), section 39 (penalty for money‑lending without licence – imprisonment up to 5 years or fine up to ₹50,000 or both)

Subject matter of the judgment:

Whether a person who advances loans to farmers, takes nominal sale deeds as security instead of registered mortgage, and refuses to reconvey after repayment, is liable to be proceeded against under the Mah

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