Section 17



Coercive, unfair or deceptive recruitment Criminal liability Debt bondage Forced labour

Section 17 penalizes advancing a bonded debt with imprisonment for a maximum of 3 years and a fine of a maximum of 2,000 INR.


Despite the prohibition of debt bondage under the Bonded Labour System (Abolition) Act in 1976, the practice is still widespread in India, partly due to the fact that the prosecution rate for these crimes remains extremely low, and in the event of a conviction, imprisonment penalties are hardly ever imposed.

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Section 17. Punishment for advancement of bonded debt.

Any person who advances any bonded debt will be punished be imprisonment for a maximum of 3 years and a fine of a maximum of INR 2000.

Law /India / Bonded Labour System (Abolition) Act, 1976

The Bonded Labour System (Abolition) Act, 1976 provides for the abolition of the bonded labour system, with a view to preventing the exploitation of vulnerable sections of society.

This Act prohibits, criminalises and extinguishes any system of debt bondage, whether by agreement, custom or contract. The Act aims to achieve the following: (i) every bonded labourer is discharged from any obligation to provide such labour; (ii) the obligation to repay any bonded debt is extinguished; (iii) the property of bonded labourers shall be free of mortgage, charge, lien or other encumbrances and shall be restored to his possession; (iv) a bonded labourer shall not be evicted from a homestead or other residential premise he was occupying as part of the consideration for the bonded labour; and (v) no creditor may accept payment against an extinguished debt.

Indian courts have given a very broad, expansive interpretation to the definition of bonded labour. For example, where a person has provided labour or services to another and received a remuneration below the minimum wage, the Courts have ruled that the labour or service falls clearly within the scope of the prohibition of forced labour under the constitution.