Bengaluru, Nov 9: Union Finance Minister Nirmala Sitharaman on Saturday said that the Rs 100 crore credit guarantee scheme for MSMEs which was announced in the budget this year will soon be placed before the Union Cabinet for approval.

Highlighting the five announcements made in this budget for MSMEs she said, "the introduction of a special credit guarantee corpus to help MSMEs will be very helpful during the time of distress...."

"The Rs 100 crore credit guarantee scheme will soon be placed before the cabinet. Immediately after getting approval from cabinet, the scheme that will provide guarantee through MSME ministry and banks will be implemented," the Union Finance Minister said, while attending the National MSME Cluster Outreach Programme here.

"The grievance, which has been there for a very long time, is that the MSMEs can get working capital from banks but they don't get term loans, loans for plant and machinery. Now the guarantee will be provided under the scheme," she explained.

Further stating that there is no need for a third party guarantee and collateral, Sitharaman said, "the Government gives you the guarantee power of Rs 100 crores, then public sector banks will develop a new credit assessment model."

Lauding Karnataka for its contribution in the MSME sector, she said, the state has 35 lakh MSMEs, and they provide 1.65 crore employments.

Highlighting the role of Small Industries Development Bank of India (SIDBI), the Finance Minister said, "the SIDBI understands small businesses. It can deal with MSMEs credit requirements and (provide) tailor made products for the credit requirement of MSMEs, and that is why SIDBI's presence in MSME clusters will do immense benefit for the MSMEs."

"....within a matter of two to three years, SIDBI, will be present physically in every MSME cluster. Now they are expanding little by little. SIDBI will open 25 branches in clusters this year, but gradually they will be moving towards every cluster a SIDBI," she said .

Earlier in the day, Sitharaman also chaired a meeting here to review performance of 10 Regional Rural Banks (RRBs)of the Southern Region, covering the five states of Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana apart from the Union Territory of Puducherry.

During the meeting, she urged RRBs to increase credit disbursement under various Government of India flagship schemes such as MUDRA, PM Vishwakarma, with the active support of their sponsor banks.

According to an official statement, the meeting focused on business performance, upgrading digital technology services, and fostering business growth in activities allied to agriculture and micro and small industry

The Union Minister also directed RRBs to increase their share in ground level agriculture credit disbursement with special focus on allied agriculture activities like dairy, animal husbandry, fisheries etc, and to take necessary steps to realise the full potential of allied agriculture activities in the region.

"RRBs and sponsor banks were specially directed to work with respective state government departments to increase credit disbursement to fisheries sector in Kerala and dairying sector in Telangana," it stated.

Specific emphasis was placed on reinforcing credit support to MSMEs and streamlining customer onboarding processes through digital innovations.

"Sitharaman also stated that all RRBs should devise a strategy for MSME credit with customised products aligning with cluster activities and conduct special outreach programmes with convergence and awareness regarding the various Government of India schemes. She said that the RRBs should explore to leverage digital platforms of SIDBI and seek MSME refinance from it," the statement added.

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New Delhi: In a significant judgement on Wednesday, 13 November, the Supreme Court emphasised that properties cannot be demolished solely based on criminal accusations or convictions. The Court asserted that such actions contravene the rule of law and infringe upon the principle of separation of powers, as only the judiciary has the authority to determine a person's guilt.

"The executive cannot pronounce a person guilty. If the executive demolishes the property of the person merely on the basis of accusation, it will strike at the rule of law. The chilling sight of a bulldozer demolishing a building reminds one of lawlessness, where might was right. Such high-handed and arbitrary actions have no place in a constitutional democracy. Our constitutional ethos do not permit such a course of action," the Court stated.

The judgement, delivered by a bench comprising Justices BR Gavai and KV Viswanathan, came in response to a series of petitions, including one filed by Jamiat Ulema-i-Hind, seeking to halt the use of demolitions as a punitive measure against those accused of crimes. The Court directed that public officials who engage in such actions be held accountable.

"Public officials who take the law into their own hands and act in a high-handed manner must be held accountable," the Court observed, underlining the importance of respecting due process.

Further, the Court noted that demolitions often impose "collective punishment" on the families of the accused or convicted, and therefore outlined specific guidelines to prevent misuse of such actions. Key directives included:

Authorities must issue a show-cause notice before proceeding with demolitions, giving owners at least 15 days to respond.

Property owners should be notified via registered post, and the notice must detail the nature of the unauthorised construction and grounds for demolition.

The designated authority must allow for a personal hearing, with proceedings duly recorded.

Demolition actions should be videographed, with reports sent to the Municipal Commissioner.

Even after issuing a demolition order, affected parties should be given time to challenge it legally. In cases where individuals do not wish to contest, adequate time must be allowed for vacating the premises.

The Court highlighted the adverse impact of such demolitions on vulnerable groups, observing, "It is not a happy sight to see women, children, and aged persons dragged to the street overnight. Heavens will not fall on the authorities if they hold their hands for some period."

However, the Court clarified that these guidelines would not apply to cases of unauthorised structures on public land, such as roads, footpaths, railway lines, or water bodies, or where a Court order for demolition exists.

This judgement builds upon previous stays on demolitions, including an interim order on 17 September, which prohibited demolitions across the country without Court permission except in cases of public encroachments.