Karnataka govt sends microfin ordinance back to Guv with explanations
Bengaluru, Feb 10 (PTI): The Karnataka government on Monday said it has re-sent the ordinance aimed at protecting borrowers from harassment by microfinance institutions (MFIs) to the Governor once again for his assent, along with the explanations he had sought.
Governor Thaawarchand Gehlot had recently returned the ordinance to the government, citing regulatory excesses.
The Karnataka Micro Finance (Prevention of Coercive Actions) Ordinance 2025 includes penal provisions such as a jail term of up to ten years and a fine of up to Rs 5 lakh for violations.
The government decided to promulgate 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 ordinance on microfinance has been sent back to the Governor along with all the explanations sought by him," the Chief Minister's Office said.
The Governor, while returning the ordinance to the government, had noted the state government was proposing to discharge all pending loans, including interest, once the ordinance comes into effect, and that no civil court shall entertain any proceedings against borrowers.
"But if all pending loans with interest are discharged, lawful and genuine lenders may face difficulties. Furthermore, they will have no legal remedy to recover their dues," the Governor stated.
He emphasised that, as a principle of natural justice, every person has the right to seek legal remedies for their grievances.
"Preventing individuals from fighting for their rights may lead to a violation of fundamental rights guaranteed under Articles 19 and 32 of the Constitution of India," Gehlot added.
He also said this goes against the principles of lending followed by government banks.
Further, he noted that the proposed ordinance could negatively impact the state's business prospects by affecting self-help groups, which play a crucial role in uplifting the most vulnerable sections of society.
The ordinance aims to regulate only unregistered and unlicensed lending agencies, he said. However, he emphasized that some of these lenders, who are genuine individuals with a conscience, often serve as a lifeline for those overlooked by the traditional credit system.
"When managed responsibly, they expand access to credit and contribute to the robust growth of the financial sector," Gehlot said.
The Governor said that the punishment provisions—10 years of imprisonment and a Rs 5 lakh fine—are disproportionate compared to those in existing laws for similar offences.
He further noted that, given that the maximum loan amount that can be sanctioned is Rs 3 lakh, imposing a Rs 5 lakh fine goes against natural justice.
The Governor pointed out that to curb forceful and unlawful activities by unscrupulous lending agencies, the state government, through its police and relevant departments, already has legal provisions under the Karnataka Money Lenders Act, 1961, the Negotiable Instruments Act, 1881, the Karnataka Debt Relief Act, 1976, the Indian Penal Code, and the Karnataka Police Act to address such violations.
Gehlot said that effective enforcement of existing laws by the authorities would be a more efficient way to regulate the issue.
He also advised that, since the Budget Session is set to commence next month, instead of rushing through an ordinance, the state government should deliberate on the issue in detail and introduce a well-structured law in the interest of the affected people and to protect their rights.
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Cong seeks thorough probe into Goa nightclub fire; Rahul alleges criminal failure of governance
New Delhi (PTI): The Congress on Sunday demanded a comprehensive investigation and strict accountability for the tragic fire at a nightclub in Goa that killed 25 people, with Rahul Gandhi claiming it was a criminal failure of safety and governance.
The fire broke out at Birch by Romeo Lane, a popular nightclub at Arpora village in North Goa, early Sunday, killing at least 25 people, including four tourists and 14 staff members, and injuring six others.
Congress president Mallikarjun Kharge expressed his deepest condolences to those who lost their loved ones in the blaze.
“This avoidable tragic incident is an irreparable loss, and I pray for the speedy recovery of all those who have been injured.
ALSO READ: https://english.varthabharati.in/india/25-killed-6-injured-in-fire-at-nightclub-in-goa
“Such tragedies call for a comprehensive investigation, strict accountability, and immediate steps to ensure that all fire safety norms are enforced, so that such devastating incidents are never repeated,” Kharge said in a post on X.
The veteran leader also appealed to all the Congress workers in the coastal region to extend every possible support and assistance to the affected families and stand with them in this hour of grief.
Rahul Gandhi, the Leader of Opposition in Lok Sabha, said he was deeply pained by the tragic fire in Arpora.
“My heartfelt condolences to the bereaved families and wishes for the speedy recovery of the injured. This is not just an accident; it is a criminal failure of safety and governance. A thorough, transparent probe must fix accountability and ensure such preventable tragedies don't occur again,” Gandhi said in an X post.
Congress general secretary in charge of organisation, K C Venugopal, sought fixing of accountability for the tragic blaze so that such incidents are not repeated.
"The fire at a night club in Arpora, Goa, is shocking and I convey my heartfelt sympathies to the families of the victims who lost their lives.
"This tragedy took place because of the negligence of the authorities in enforcing fire safety norms. We urge a thorough and impartial investigation to identify those responsible and to ensure accountability, so that such a tragedy is never repeated," he said in a post on X.
Deeply pained by the tragic fire in Arpora, Goa that claimed more than 20 lives. My heartfelt condolences to the bereaved families and wishes for the speedy recovery of the injured.
— Rahul Gandhi (@RahulGandhi) December 7, 2025
This is not just an accident, it is a criminal failure of safety and governance. A thorough,…
