Errant Licensed Moneylender, Rajadanran s/o Suppiah, Fined $29,000

19 OCT 2016

19 Oct 2016 Posted in Press releases

  1. The Registry of Moneylenders, a department under the Ministry of Law, brought charges in the State Courts on 13 October 2014 against Rajadanran s/o Suppiah, 53 years old, the sole proprietor of the moneylending business, Gauthamma Credit.

  2. Gauthamma Credit held a moneylending licence from 7 July 2010 to 12 September 2014. The licence was not renewed after 12 September 2014.

  3. On 17 October 2016, Rajadanran pleaded guilty in the State Courts and was convicted on five out of 17 charges for the following offences:

  • One charge under Section 15(2)(a) of the Moneylenders Act (Cap 188) for contravening a condition of licence by failing to obtain any independent and reliable document from a borrower to evidence the income of the borrower;

  • One charge under Section 21(5)(a) of the Act for failing to obtain a borrower’s signature as acknowledgement of having received a cash payment;

  • One charge under Section 24(7) of the Act for recklessly furnishing false information to the Registrar in respect of the annual income of a borrower;

  • One charge under Rule 20(1)(b) of the Moneylender Rules 2009 for granting an unsecured loan to a borrower for an amount which exceeded 2 months of the borrower’s monthly income; and

  • One charge under Rule 20(1)(a) of the Moneylender Rules 2009 for granting an unsecured loan to a borrower for an amount which exceeded 4 months of the borrower’s monthly income.

  1. Rajadanran was sentenced in the State Courts to a total fine of $29,000 (in default 15 weeks’ imprisonment).
  1. Forty-two other licensed moneylenders or their officers have been convicted and fined for offences under the Moneylenders Act since 2011 (see Annex A (0.1MB)).
  1. The Registry carries out regular inspections on licensed moneylenders. Where breaches of moneylending laws are found, enforcement measures are taken, including the suspension or revocation of licences, forfeiture of security deposits, warnings and prosecutions. Those convicted of breaches of the Moneylenders Act and Rules face a fine of up to $40,000 and/or an imprisonment term of up to two years on each charge.

19 OCTOBER 2016
REGISTRY OF MONEYLENDERS
MINSTRY OF LAW

Last updated on 19 Oct 2016