MFI ordinance will be sent back to Governor with clarifications: Karnataka Home Min. G Parameshwara
Bengaluru, Feb 8 (PTI): After the Governor returned the ordinance aimed at protecting borrowers from harassment by microfinance institutions (MFIs), Karnataka Home Minister G Parameshwara said on Saturday that the government would address his observations and send it again for his assent.
Governor Thaawarchand Gehlot has sent back the ordinance to the government, citing regulatory excesses.
The Karnataka Micro Finance (Prevention of Coercive Actions) Ordinance 2025 drafted by the government has penal provisions including a jail term up to ten years, and fine as high as Rs five lakh for violation.
The government decided on promulgating the ordinance, in response to a spate of suicides and multiple complaints from various parts of the state against predatory loan recovery methods adopted by microfinance firms.
"The Governor has returned it with certain observations, the government will reply to them and send it again (to him)," Parameshwara told reporters here.
Responding to a question on the Governor's observation regarding a higher fine, he said, "The fine is imposed on those who commit wrong, not everyone. I don't know in what context he has made the observations. We have made such provisions in the larger interest so that it becomes a deterrent."
The Governor in his observation has said the terms of punishment --10-year imprisonment and Rs 5 lakh fine -- are disproportionate compared to the provisions already available in other laws for similar offences.
In any case, he said, when the maximum amount of loan that can be lent is Rs 3 lakh, the proposed fine of Rs 5 lakh is against natural principles.
The Governor has also advised that since the budget session will commence next month, instead of bringing an ordinance in a hurry, the state must deliberate this issue in detail and bring an effective enactment in the interest of the affected people and to protect their rights.
Responding to a question on this the Home Minister said, "He has made such a suggestion as we are planning for a legislature session from March 3.
But, we wanted to put a law in place to control such incidents, as there were reports of suicide and harassment cases increasing every day."
The Governor has sought certain clarifications, and they will be given, Parameshwara said in response to a question. "Differences in perspective between the government and the Governor will be there, such things have happened earlier too and in other states too. We cannot tell the Governor not to seek clarifications."
Regarding the Governor suggesting the use of existing law instead of a new ordinance, Parameshwara said, "He has shared his perspective. Despite having certain existing laws, as it cannot be implemented, we have made provision for it in this ordinance...."
The Governor has pointed out that to control the forceful and unlawful activities of unscrupulous agencies, the state through its police and departments concerned have already got provisions under the Karnataka Money Lenders Act, 1961, Negotiable Instruments Act, 1881, The Karnataka Debt Relief Act, 1976 and Indian Penal Code, including Karnataka Police Act to deal with such discrepancies.
Gehlot said efficient implementation of existing frameworks by enforcement machinery could help regulate these problems in an efficient manner.
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Man thrown 50 ft into air as powerful storm lashes UP's Bareilly
Bareilly (PTI): In a shocking incident, a man was flung nearly 50 ft into the air along with a tin roof and thrown into a field during a powerful storm in Uttar Pradesh's Bareilly district, where the adverse weather claimed at least four lives.
The man in the video, Nanhe Mian of Bamiyana village, suffered multiple injuries in the incident that occurred on Wednesday.
In a video of the incident doing the rounds on social media, the man is seen being launched into the air while he is holding onto the tin roof. He then lets go, does a somersault in the air and lands in the adjacent field.
Initially, some social media users expressed disbelief over the video and suspected that it was generated using artificial intelligence. But for Nanhe, an e-rickshaw driver, it is all too real.
Nanhe, around 50 years old, said on Thursday that he had gone to a wedding hall to collect some items when the storm intensified.
"The wind was so strong that the tin shed started making loud noises. I thought if I did not hold onto it, it would be blown away in the storm. So, I immediately grabbed a rope tied to the shed," he said.
"Then a very strong gust came and lifted both the shed and me into the air. I was carried nearly 50 ft into the air before the storm weakened and I fell to the ground," he said.
Nanhe, who lives with his wife and their five children, said he suffered injuries on his head, back, arms and legs. These include a fractured arm and leg.
Bareilly Police said in a statement that Nahne was standing inside the wedding hall in Bamiyana when strong winds and rain tore the tin roof of the structure.
According to the Uttar Pradesh government, at least 89 people were killed and around 50 injured in storm and rain-related incidents across the state on Wednesday.
Several animals were also killed and houses and shops were damaged in many places.
In Bareilly, four people were killed between 8.30 am and 11.30 pm on Wednesday, nine animals perished and around 30 houses suffered heavy damage, officials said.
Meet Nanhe Miyan of Bareilly, UP.
— Treeni (@treeni) May 13, 2026
During a severe storm at a wedding venue, he was lifted into the air along with a tin shed he was holding onto.
He flew high before crashing to the ground, breaking both arms and legs. Now hospitalised.pic.twitter.com/D616Z5X23L
