Will amend law to rein in microfinance companies: CM Siddaramaiah
Bengaluru, Jan 25 (PTI): Karnataka Chief Minister Siddaramaiah on Saturday said the state government would amend the existing laws related to money lending business and introduce new legislation to protect the interest of the genuine borrowers.
In the wake public outrage against the alleged harassment by micro-finance companies to recover money from borrowers, Siddaramaiah chaired an emergency meeting with his deputy D K Shivakumar, Revenue Minister Krishna Byre Gowda, Home Minister G Parameshwara, Law Minister H K Patil, senior government and top police officials.
Representatives of the microfinance companies association, regional officers of the Reserve Bank of India and NABARD officials were also present.
Later, briefing reporters, the CM said he took the opinion of the microfinance companies as well as the RBI officials.
"After taking their view, we told them that we won't say not to give loan or do not recover money from borrowers but while recovering money you should not torture and harass people," Siddaramaiah said.
While recovering money, RBI guidelines should be followed by the micro-finance institutions. The central bank should also monitor the violations of these guidelines, he added.
"We are going to amend the existing laws and also bring new legislation to protect the interest of the genuine borrowers of the micro finance institution and other private money lenders," he added.
The Chief Minister added he told the companies not to charge interest more than the prescribed rules.
"After 5 PM, no one should go for recovering money. We have opposed outsourcing the recovery work," he said.
"What happens is, it is outsourced and rowdies are roped in. This should not be done. We will take stringent action against violation of rules for recovering money,” Siddaramaiah warned.
The meeting was convened after many people allegedly died by suicide, families fled their homes and women staged protests against the harassemnet by microfinance companies across the state.
The menace is more prevalent in the rural areas.
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Congress using hijab issue to pacify minority anger, alleges Karnataka LoP R Ashoka
Bengaluru: Leader of Opposition in the Assembly R. Ashoka has accused the Congress government of using the hijab issue to placate what he described as discontent among minority voters after the Davanagere by-election.
In a post on X on Wednesday, Ashoka alleged that the state government, instead of addressing issues such as price rise, corruption, farmers’ distress and law and order, was attempting to retain its minority vote base by reviving the hijab issue.
Referring to the 2022 dress code introduced by the BJP government, which prohibited hijab in schools and colleges, Ashoka said the Karnataka High Court had upheld the policy and emphasised the importance of discipline in educational institutions.
He questioned the Congress government’s move to revisit the issue and asked whether setting aside the court-backed policy to benefit one community could be described as secularism.
Ashoka further alleged that while the government was willing to permit hijab, it continued to prohibit saffron shawls.
He accused the government of dividing students on religious lines rather than treating schools and colleges as spaces of equality.
Drawing a comparison with Mamata Banerjee’s government in West Bengal, Ashoka claimed that excessive appeasement politics had harmed the state and warned that the Congress in Karnataka could face a similar political response.
He said voters in Karnataka would teach the Congress a lesson for what he termed “vote-bank politics” and for compromising constitutional and judicial principles.
