(1) All persons who are connected with and responsible for the day-to-day control, business and management of a MFI including the Partners, Directors and the employees who resort to any type of coercive measures against the SHGs or its members or their family members shall be liable for punishment of imprisonment which may extend up to a period of three years or with fine which may extend to one lakh rupees or with both.
Explanation:- For the purposes of this section, “coercive action” by an MFI against the SHGs or its members of their family members include the following,-
(a) obstructing or using violence to, insulting or intimidating the borrower or his family members, or Penalty for coercive actions against MFIs.
Central Act 5 of 1908.
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(b) persistently following the borrower or his family member from place to place or interfering with any property owned or used by him or depriving him of, or hindering him in the use of any such property, or
(c) frequenting the house or other place where such other person resides or works, or carries on business, or happens to be, or
(d) doing any act calculated to annoy or intimidate such person or the members of his family, or
(e) moving or acting in a manner which causes or is calculated to cause alarm or danger to the person or property of such other person, or
(f) seeking to remove forcibly any document from the borrower which entitles the borrower to a benefit under any Government programme:
Provided that a person who frequents the house or place referred to in clause (c) in order merely to obtain or communicate information shall not be deemed to be using coercive action.
(2) The MFI or the persons who use coercive actions as stated in sub section (1) shall be prosecuted in accordance with the provisions of this Act.
(3) The provisions of the Code of Criminal Procedure, 1973, shall, so far as may be, apply to the proceedings before a Fast-Track Court, and for the purpose of the said provisions, a Fast-Track Court shall be deemed to be a Magistrate.
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17. All persons who are connected with and responsible for the day-to-day control, business and management of a MFI including the Partners and Directors of such MFI which carries on the business of providing loans either without obtaining registration of the MFI from the Registering Authority under section 3 or extending a further loan without prior approval under sub-section (1) of section 10 of the Act or granting loan in violation of sub-section (4) thereof, shall be liable for punishment with imprisonment for a term which may extend to three years and with fine which may extend to rupees one lakh.
18. Any person who contravenes any provision other than section 3 and section 16 of this Act, shall be punishable with imprisonment for a period of six months or with fine which may extend to ten thousand rupees or with both.
19. Every officer of the Government and every person acting under the provisions of this Act shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code, 1860.