Karnataka plans law to waive farm loans from money lenders
Bengaluru, Aug 25: Karnataka plans to make a law to get waived the loans farmers and landless agricultural labourers took from moneylenders to provide them debt relief, said an official on Saturday.
"The state cabinet has decided to enact a law that prohibits moneylenders from recovering loans given to farmers and landless labourers whose annual income is less than Rs 1.25 lakh per annum and own less than two hectares of dry land or half acre irrigated land," the official told IANS here.
As the state legislature is not in session, the state government plans to bring the law through an ordinance and enforce it after the Governor's approval and assent of the President.
"The law will have a provision to levy Rs 1.25-lakh fine or one-year jail term or both on the moneylenders if they force the beneficiaries to repay by coercion," said the official.
State Law and Parliamentary Affairs Minister Byre Gowda told reporters here the Karnataka Debt Relief Ordinance, 2018 would be promulgated to provide relief to small and marginal farmers who take loans from moneylenders, mortgaging their lands.
The move comes a fortnight after the Janata Dal-Secular (JD-S)-Congress coalition government on August 10 decided to waive crop loans raised by farmers from the state cooperative banks and state-run (nationalised banks) to the tune of Rs 43,448 crore, including additional loans up to Rs 9,448 crore till July 10.
"As many small and marginal farmers and landless workers borrow money from private lenders by pledging their assets like agriculture lands or gold jewellery at high interest rate, the government is committed to provide relief to them as in the case of other farmers who borrow from banks," Gowda asserted.
The beneficiaries will have to apply to the jurisdictional Assistant Commissioners in their respective districts to claim the debt relief by providing details of the amount borrowed and from which money lender with documents or assets hypothecated.
"A similar law was enacted in the state in 1976 and 1980 through the ordinance route. Based on same experience, we have decided to enact it through the Karnataka Debt Relief Act, 2018," reiterated Gowda.
The government hopes the new law will free the farmers and labourers from the clutches of moneylenders if they are unable to repay their loans because of high interest rates and poor returns from their farmlands.
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EAM Jaishankar holds talks with EU counterparts in Brussels, discusses Iran conflict
New Delhi (PTI): External Affairs Minister S Jaishankar met with his counterparts from the 27 member states of the European Union (EU) in Brussels focusing on global flashpoints in Ukraine and West Asia as well as ways to deepen India's relations with Europe.
Jaishankar is on a two-day visit to the Belgian capital at the invitation of EU Foreign and Security Policy Chief Kaja Kallas to attend a meeting of the Foreign Affairs Council of the bloc.
It is the first high-level visit from India to Brussels headquartered EU after the two sides firmed up a landmark Free Trade Agreement (FTA) in January.
The external affairs minister held separate meetings with European Commission president Ursula von der Leyen and his counterparts from Germany, Greece and Belgium.
"A new chapter in India-EU ties has opened up in 2026," Jaishankar said in an apparent reference to the outcomes reached by the two sides in their summit meeting in January in New Delhi.
"The Foreign Ministers coordinate translating the various agreements into outcomes. Our conversation today therefore covered trade, investment, technology, mobility and defence in particular," he said on social media.
"The stronger convergence between India and EU in a multipolar world is also expressed in closer consultations. Discussed the West Asia conflict, the Ukraine situation and the Indo-Pacific in today's gathering," he said.
Apart from the FTA, the India-EU summit produced a plethora of other outcomes including a security and defence partnership and a comprehensive framework for cooperation on mobility.
The Foreign Affairs Council discussed how to better protect shipping in the Strait of Hormuz, including possible contributions by the EU's naval mission Aspides, and a European security strategy, Kallas told reporters.
Global oil and gas prices have surged after Iran has virtually blocked the Strait of Hormuz, a narrow shipping lane between the Persian Gulf and the Gulf of Oman that handles roughly 20 per cent of global oil and LNG (Liquefied Natural Gas).
The West Asia region has been a major source of India's energy procurement.
The closure of the strait is hurting the global economy and it is helping Moscow fund its war, Kallas said, days after the US temporarily lifted sanctions on procurement of Russian crude oil.
She said the focus on the Middle East should not take the focus away from the war in Ukraine, and the easing of US sanctions on Russian oil sets a "dangerous precedent".
Following his meeting with Von der Leyen, Jaishankar said her highly successful state visit to India in January marked a "turning point" in India-EU ties. "We are following up vigorously on it."
Von der Leyen said that the two sides had concluded a free trade agreement, "the mother of all deals", and signed the Security and Defence Partnership.
"Now we are focused on efficient implementation, to deliver for the people of Europe and India as soon as possible," she said.
"We also discussed developments in the Middle East and in Ukraine. De-escalation, stability and energy security are our shared objectives," she added.
After his talks with German Foreign Minister Johann Wadephul, Jaishankar said they exchanged notes on the conflict in West Asia.
"A valuable exchange of notes on the conflict in West Asia. Also took stock of the progress of our bilateral relations following the State visit of @bundeskanzler Friedrich Merz to India," he said.
