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Holding blank cheques

(Querist) 31 May 2018 This query is : Resolved 
Dear Sir,
I am a Registered Money Lender in Maharashtra holding a valid Licence wile Lending Money I take Blank cheques from the borrowers as a security.

My Q is
1. Is taking a Blank Chq is valid or an Offence in Law ?

Please Guide
Blank chq are usually taken as the Interest amount increases so we have to increase the chq amount
Ms.Usha Kapoor (Expert) 01 June 2018
Obtaining Blank cheques from borrowers by money lenders is shortly going to become illegal in Maharashtra.
Please click the following link.
Hemant Agarwal (Expert) 01 June 2018
1. Taking Blank Cheques and Filling in details (whatever) is a Material Alteration and is illegal, during disputes filed in Court. You can be easily be snared by the opposite party, under various charges.

2. Interest amount is pre-fixed and even in floating rates, you yourself CANNOT fill in anything on the cheque, without the written consent of the Client, which could also amount to Breach of Contract, Breach of Trust, Cheating etc....

Keep Smiling .... Hemant Agarwal
Guest (Expert) 01 June 2018
That can prove to be an easy mode and a pathway for landing yourself in jail on various criminal charges.
Vijay (Querist) 02 June 2018
Answers were upto the satsifaction from the experts
Dr J C Vashista (Expert) 03 June 2018
Filling blank cheque(s) is no material alteration, I respectfully disagree with expert Mr. Hemant Agarwal.
Dr J C Vashista (Expert) 03 June 2018
Whether interest on loan advanced is floating or fixed, if it is fixed take the cheque with amount filled to avoid any dispute at a later stage.
Dr J C Vashista (Expert) 03 June 2018
Commercial query.
You should engage a local lawyer, which you can afford to pay salary/fees.

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