“Pawn Broker” means a person who carries on the business of taking goods and chattels in pawn for a loan. Every pawn broker should obtain license to carry on business under an agreement that goods may be afterwards repurchased on any time. Pawn Broker license are governed by The Tamil Nadu Pawn Brokers Act’ 1943 and Tamil Nadu Pawn Brokers Rules’ 1943.
In order to regulate the business of Pawn Brokers, Tamil Nadu Pawn Brokers Act has been enacted in 1943 and subsequently amended. The Tahsildars are the licensing authorities under the Tamil Nadu Pawn Brokers Act’ 1943 and are empowered to grant and refuse licenses subject to the conditions imposed in sub section 4(4) & 4(2) of the act respectively.
Section 4(5) ofAct “Every license granted shall be valid for a period of one yearand may be renewed from time to time, for a period of three years on payment of a renewal fee of Rs.100 / year under sub section (4) in to the following Account viz., License / Renewal Fees – Administration of Pawn Brokers Act,1943 - Account Code: 147500200AD22722 through e-chalan in District Treasury or sub- treasuries.
A separate license from the Competent Authority shall be obtained for running more than one shop or place of business, whether in same town or village or in different town or village.
The Licensing Authority can refuse the application if he/she is satisfied that
(i) the applicant is of bad Character.
(ii) the shop / business carried out suffered with thieves frequently or persons of a bad Character.
(iii) The licensing Authority may consult Inspector having jurisdictionover the place of business before or refusing of the license.
The licensing Authority is having power to cancel or suspend license:
1) If any licensee carries on the business in contravention.
2) If any reason for which authority could have to grant the license to the pawnbroker is brought to the notice of that authority after the grant of license.
3) If the licensee is convicted for an offence.
4) If the licensee maintains false accounts.