September 11, 2024

Section 41A – Code of Criminal Procedure, 1973

[Notice of appearance before police officer (1) The police officer [shall], in all cases where the arrest of a person is not required under the provisions of sub-section (1) of section 41, issue a notice directing the person against whom a reasonable complaint has been made, or credible information has been received, or a reasonable suspicion exists that he has committed a cognizable offence, to appear before him or at such other place as may be specified in the notice. (2) Where such a notice is issued to any person, it shall be the duty of that person to comply with the terms of the notice. (3) Where such person complies and continues to comply with the notice, he shall not be arrested in respect of the offence referred to in the notice unless, for reasons to be recorded, the police officer is of the opinion that he ought to be arrested. [(4) Where such person, at any time, fails to comply with the terms of the notice or is unwilling to identify himself, the police officer may, subject to such orders as may have been passed by a competent Court in this behalf, arrest him for the offence mentioned in the notice.]

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Section 41 – Code of Criminal Procedure, 1973

When police may arrest without warrant (1) Any police officer may without an order from a Magistrate and without a warrant, arrest any person— [(a)   who commits, in the presence of a police officer, a cognizable offence; (b)   against whom a reasonable complaint has been made, or credible information has been received, or a reasonable suspicion exists that he has committed a cognizable offence punishable with imprisonment for a term which may be less than seven years or which may extend to seven years whether with or without fine, if the following conditions are satisfied, namely:— (i)   the police officer has reason to believe on the basis of such complaint, information, or suspicion that such person has committed the said offence; (ii)   the police officer is satisfied that such arrest is necessary— (a)   to prevent such person from committing any further offence; or (b)   for proper investigation of the offence; or (c)   to prevent such person from causing the evidence of the offence to disappear or tampering with such evidence in any manner; or (d)   to prevent such person from making any inducement, threat or promise to any person acquainted with the facts of the case so as to dissuade him from disclosing such facts to the Court or to the police officer; or (e)   as unless such person is arrested, his presence in the Court whenever required cannot be ensured,     and the police officer shall record while making such arrest, his reasons in writing:     [Provided that a police officer shall, in all cases where the arrest of a person is not required under the provisions of this sub-section, record the reasons in writing for not making the arrest;] (ba)   against whom credible information has been received that he has committed a cognizable offence punishable with imprisonment for a term which may extend to more than seven years whether with or without fine or with death sentence and the police officer has reason to believe on the basis of that information that such person has committed the said offence;] or (c)   who has been proclaimed as an offender either under this Code or by order of the State Government; or (d)   in whose possession anything is found which may reasonably be suspected to be stolen property and who may reasonably be suspected of having committed an offence with reference to such thing; or (e)   who obstructs a police officer while in the execution of his duty, or who has escaped, or attempts to escape, from lawful custody; or (f)   who is reasonably suspected of being a deserter from any of the Armed Forces of the Union; or (g)   who has been concerned in, or against whom a reasonable complaint has been made, or credible information has been received, or a reasonable suspicion exists, of his having been concerned in, any act committed at any place out of India which, if committed in India, would have been punishable as an offence, and for which he is, under any law relating to extradition, or otherwise, liable to be apprehended or detained in custody in India; or (h)   who, being a released convict, commits a breach of any rule made under sub-section (5) of section 356; or (i)   for whose arrest any requisition, whether written or oral, has been received from another police officer, provided that the requisition specifies the person to be arrested and the offence or other cause for which the arrest is to be made and it appears therefrom that the person might lawfully be arrested without a warrant by the officer who issued the requisition. [(2) Subject to the provisions of section 42, no person concerned in a non-cognizable offence or against whom a complaint has been made or credible information has been received or reasonable suspicion exists of his having so concerned, shall be arrested except under a warrant or order of a Magistrate.]

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Section 40 – Code of Criminal Procedure, 1973

Duty of officers employed in connection with the affairs of a village to make certain report (1) Every officer employed in connection with the affairs of a village and every person residing in a village shall forthwith communicate to the nearest Magistrate or to the officer in charge of the nearest police station, whichever is nearer, any information which he may possess respecting— (a)   the permanent or temporary residence of any notorious receiver or vender of stolen property in or near such village; (b)   the resort to any place within, or the passage through, such village of any person whom he knows, or reasonably suspects, to be a thug, robber, escaped convict or proclaimed offender; (c)   the commission of, or intention to commit, in or near such village any non-bailable offence or any offence punishable under section 143, section 144, section 145, section 147, or section 148 of the Indian Penal Code (45 of 1860); (d)   the occurrence in or near such village of any sudden or unnatural death or of any death under suspicious circumstances or the discovery in or near such village of any corpse or part of a corpse, in circumstances which lead to a reasonable suspicion that such a death has occurred or the disappearance from such village of any person in circumstances which lead to a reasonable suspicion that a non-bailable offence has been committed in respect of such person; (e)   the commission of, or intention to commit, at any place out of India near such village any act which, if committed in India, would be an offence punishable under any of the following sections of the Indian Penal Code (45 of 1860), namely, 231 to 238 (both inclusive), 302, 304, 382, 392 to 399 (both inclusive), 402, 435, 436, 449, 450, 457 to 460 (both inclusive), 489A, 489B, 489C and 489D; (f)   any matter likely to affect the maintenance of order or the prevention of crime or the safety of person or property respecting which the District Magistrate, by general or special order made with the previous sanction of the State Government, has directed him to communicate information. (2) In this section,— (i)   “village” includes village-lands; (ii)   the expression “proclaimed offender” includes any person proclaimed as an offender by any Court or authority in any territory in India to which this Code does not extend, in respect of any act which if committed in the territories to which this Code extends, would be an offence punishable under any of the following sections of the Indian Penal Code (45 of 1860), namely, 302, 304, 382, 392 to 399 (both inclusive), 402, 435, 436, 449, 450 and 457 to 460 (both inclusive); (iii)   the words “officer employed in connection with the affairs of the village” means a member of the panchayat of the village and includes the headman and every officer or other person appointed to perform any function connected with the administration of the village.

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Section 39 – Code of Criminal Procedure, 1973

Public to give information of certain offences (1) Every person, aware of the commission of, or of the intention of any other person to commit, any offence punishable under any of the following sections of the Indian Penal Code (45 of 1860), namely :— (i)   sections 121 to 126, both inclusive, and section 130 (that is to say, offences against the State specified in Chapter VI of the said Code); (ii)   sections 143, 144, 145, 147 and 148 (that is to say, offences against the public tranquillity specified in Chapter VIII of the said Code); (iii)   sections 161 to 165A, both inclusive (that is to say, offences relating to illegal gratification); (iv)   sections 272 to 278, both inclusive (that is to say, offences relating to adulteration of food and drugs, etc.); (v)   sections 302, 303 and 304 (that is to say, offences affecting life); [(va)   section 364A (that is to say, offence relating to kidnapping for ransom, etc.)]; (vi)   section 382 (that is to say, offence of theft after preparation made for causing death, hurt or restraint in order to the committing of the theft); (vii)   sections 392 to 399, both inclusive, and section 402 (that is to say, offences of robbery and dacoity); (viii)   section 409 (that is to say, offence relating to criminal breach of trust by public servant, etc.); (ix)   sections 431 to 439, both inclusive (that is to say, offences of mischief against property); (x)   sections 449 and 450 (that is to say, offence of house-trespass); (xi)   sections 456 to 460, both inclusive (that is to say, offences of lurking house-trespass); and (xii)   sections 489A to 489E, both inclusive (that is to say, offences relating to currency notes and bank notes), shall, in the absence of any reasonable excuse, the burden of proving which excuse shall lie upon the person so aware, forthwith give information to the nearest Magistrate or police officer of such commission or intention. (2) For the purposes of this section, the term “offence” includes any act committed at any place out of India which would constitute an offence if committed in India.

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Section 37 – Code of Criminal Procedure, 1973

Public when to assist Magistrates and police Every person is bound to assist a Magistrate or police officer reasonably demanding his aid— (a)   in the taking or preventing the escape of any other person whom such Magistrate or police officer is authorised to arrest; or (b)   in the prevention or suppression of a breach of the peace; or (c)   in the prevention of any injury attempted to be committed to any railway, canal, telegraph or public property.

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Section 35 – Code of Criminal Procedure, 1973

Powers of Judges and Magistrates exercisable by their successors-in-office (1) Subject to the other provisions of this Code, the powers and duties of a Judge or Magistrate may be exercised or performed by his successor-in-office. (2) When there is any doubt as to who is the successor-in-office of any Additional or Assistant Sessions Judge, the Sessions Judge shall determine by order in writing the Judge who shall, for the purposes of this Code or of any proceedings or order thereunder, be deemed to be the successor-in-office of such Additional or Assistant Sessions Judge. (3) When there is any doubt as to who is the successor-in-office of any Magistrate, the Chief Judicial Magistrate, or the District Magistrate, as the case may be, shall determine by order in writing the Magistrate who shall, for the purpose of this Code or of any proceedings or order thereunder, be deemed to be the successor-in-office of such Magistrate. COMMENTS LAW COMMISSION REPORTS Views on sentencing powers of Magistrates – In regard to sentencing powers of the Chief Judicial Magistrate, the Law Commission observed : “He (the CJM) would naturally be a senior and experienced Magistrate who could be safely entrusted with the power to impose punishment up to seven years’ imprisonment. After the separation of the executive from the judiciary, there would not be any objection to such a Magistrate trying serious cases and awarding sentences up to seven years simply because he is designated as a Magistrate.” In regard to sentencing powers of other Magistrates, the Commission observed : “When the separation of the judiciary from the executive is fully effected, a great majority of Magistrates will be legally qualified and trained members of the Judiciary who can be entrusted with somewhat higher sentencing powers than they now have.”

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Impact of Revised RBI Guidelines on Section 8 Microfinance Companies

Impact of Revised RBI Guidelines on Section 8 Microfinance Companies

Section 8 Microfinance Company Registration is the perfect solution. It enables you to establish an organization focused on helping underprivileged communities reduce poverty through accessible microfinance services. Section 8 Microfinance companies are exempt from acquiring an RBI license according to the master circular (RBI/2015-16/15 DNBR (PD) CC.No.052/03.10.119/2015-16) dated July 01, 2015. Microfinance in India allows for the provision of unsecured loans, including personal loans, group loans, and household loans, with interest rates capped at 26% per annum in compliance with RBI norms. By choosing Section 8 Microfinance Company Registration, you can create a unique pathway for organizations dedicated to social welfare.  Section 8 Microfinance Companies Micro finance companies are financial businesses that offer small-scale financial services such as loans, credit, or deposits. These companies were created to simplify the credit system for small enterprises, which are unable to obtain a loan from banks owing to their complicated process. As a result, it is usually referred to as a Micro-credit, Micro-benefit Company. They make modest loans to a variety of small companies and people that do not have access to regular banking channels or loan eligibility. They provide minor loans of less than Rs.50, 000 in rural regions and Rs.125, 000 in metropolitan areas. The Section-8 Company is the easiest way to form a Micro Finance Company in India as per Ministry of Corporate Affairs. Without collecting any additional fees or ensuring security. It can make loans at low interest rates as recommended by the RBI and the central government. They provide significant assistance to all aspects of rural and agricultural development, including revenue and job generation. Key Features and Regulatory Exemptions of Section 8 Microfinance Companies RBI Approval Not Required: Section 8 Microfinance Companies operate without the need for explicit permission from the Reserve Bank of India (RBI), simplifying their establishment and operation. No Minimum Capital Requirement: Unlike other financial institutions, there is no mandate for a minimum capital investment of Rs. 5 crores, making it more accessible for entities to start microfinance operations. Flexibility in Loan Provisioning: These companies are empowered to offer unsecured loans up to Rs. 50,000 to small businesses and up to Rs. 1.25 lakh for primary residential purposes, effectively addressing their target demographics’ needs. Adherence to RBI’s Pricing Guidelines: Despite the exemption from certain regulations, Section 8 companies must comply with the RBI’s stipulations regarding interest rates and processing fees, ensuring fairness and transparency in their operations. Legal Rights in Loan Recovery: They are recognized as legitimate financing entities with the legal authority to pursue recovery from defaulters, safeguarding their financial interests. Exemption under RBI Act: The RBI’s master circular dated July 1, 2015, exempts Section 8 companies engaged in microfinance from sections 45-IA, 45-IB, and 45-IC of the RBI Act, 1934, provided they focus on micro-lending within specified limits and do not accept public deposits. This exemption underscores the RBI’s support for microfinance activities to elevate the underserved populations’ income levels and living standards without the stringent regulatory framework applicable to typical Non-Banking Financial Companies (NBFCs).   Establishing Microfinance Companies The Reserve Bank of India (RBI) typically permits only Non-Banking Finance Companies (NBFCs) to engage in financial operations. Nonetheless, the RBI grants specific exemptions to certain businesses, allowing them to undertake financial activities within defined limits. Consequently, the registration of a microfinance company can be pursued through two distinct avenues: Non-Banking Finance Companies (NBFCs) that are officially registered with the RBI. Section 8 Companies are established following Section 8 of the Companies Act, 2013. The objective of Section 8 Microfinance Company Empowering low-income individuals to achieve self-sufficiency by providing them with financial services and opportunities. Offering banking services tailored for small monetary transactions to cater to the needs of those traditionally excluded from the banking sector. Extending financial support to individuals engaged in various trades and professions, such as transportation, fishing, carpentry, etc., to enhance their economic stability. Assisting small businesses in accessing financial services without the need for collateral, thus enabling their growth and sustainability. Promoting the active participation of women in economic activities by providing them with financial tools and opportunities to create sustainable livelihoods. Facilitating access to quality healthcare services through financial support improves the overall well-being of underserved communities. Advantages of Operating Accessibility to Funding: Microfinance companies are crucial in bridging the financial gap by providing accessible funding options to underserved communities, thus facilitating economic inclusion. Promotion of Entrepreneurship: By offering financial services tailored to the needs of small-scale entrepreneurs, these institutions encourage self-reliance and the establishment of new businesses, contributing to economic development. High Repayment Rates: Microfinance institutions typically report higher loan repayment rates than conventional banking products, indicating a strong credit discipline among their clientele. Short-term Financial Resilience: These companies offer a lifeline to individuals and businesses in need, providing financial stability during temporary hardships and enabling recovery and growth. Diverse Credit Solutions: Catering to a wide range of needs, microfinance companies offer various forms of credit assistance, including emergency loans, consumer loans, business loans, working capital loans, and housing loans, thereby addressing the multifaceted financial needs of their target demographic. Section 8 Micro Finance Company Loan Limits Borrowers having a yearly household income of less than Rs. 1, 00,000 in rural areas or less than Rs. 1, 60,000 in urban and semi-urban areas would be eligible. The loan amount will be limited to Rs. 60,000 in the first cycle and Rs. 1,000,000 in future cycles. The borrower’s total debt will not exceed Rs. 100,000. For loans in excess of Rs. 30,000, the loan term cannot be less than 24 months, with no penalty for early repayment. The loan will be given with no collateral. The total amount of loans issued for income creation is at least 50% of the total amount of loans given by the MFIS. The loan can be repaid in weekly, biweekly, or monthly instalments, depending on the borrower’s preference. Revised RBI Guidelines on Section 8 Microfinance Companies Scope of Loans: The Reserve Bank of India has broadened the definition of microfinance loans to include collateral-free lending to households with an annual income of up to INR 3,00,000.

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Section 34 – Code of Criminal Procedure, 1973

Withdrawal of powers (1) The High Court or the State Government, as the case may be, may withdraw all or any of the powers conferred by it under this Code on any person or by any officer subordinate to it. (2) Any powers conferred by the Chief Judicial Magistrate or by the District Magistrate may be withdrawn by the respective Magistrate by whom such powers were conferred.

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