(1) After the commencement of this Act, the following matters shall be observed at the time of execution of every Bhagela contract and in case of contravention such contract shall be deemed to be void :-
(a) All the terms of the contract entered into between the parties shall be recorded in a document and it shall be entered in a register in the office of the village Patwari within such period and on payment of such fee to the Patwari as the Government may prescribe by rules under this Act;
(b) The person making the advance or to whom the debt is due, shall deliver to the executant a certified copy of the document referred to in clause (a) at the time of execution of the document;
(c) The period expressed or implied during which the labor is to be performed shall not in any case exceed one year. But the parties may terminate the contract before the expiry of the period of one year by executing another document. A copy of the subsequent document shall also be delivered in accordance with the provisions of clause (b);
(d) the contract shall contain no condition as regards performance of labor by a child under twelve years of age or for recovery from it of any advance or debt or interest which is the consideration or part of the consideration of the contract;
(e) it shall be specified in the contract that on the expiry of the period of performance of labor, all liability in respect of an advance, debt or interest, which is the consideration or part of the consideration of the contract shall be extinguished.
(2) Notwithstanding anything contained in the Hyderabad Stamp Act of 1331 F., a deed of Bhagela contract and its certified copy shall be exempt from stamp duty.
(3) The instrument of Bhagela contract which is void under sub-section (1) shall not be admitted to registration under the Hyderabad Registration of Documents Act of 1328 F.