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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CJI calls for 'unified judicial policy', use of technology to converge practices across courts
Jaisalmer (PTI): Pushing for a "unified judicial policy", Chief Justice of India Surya Kant on Saturday said technology can help align standards and practices across courts, creating a "seamless experience" for citizens, regardless of their location.
He said high courts -- due to the federal structure -- have had their own practices and technological capacities, and "regional barriers" can be broken down with technology to create a more unified judicial ecosystem.
Delivering the keynote address at the West Zone Regional Conference in Jaisalmer, Kant proposed the idea of a "national judicial ecosystem" and called for an overhaul of India's judicial system with the integration of technology.
"Today, as technology reduces geographical barriers and enables convergence, it invites us to think of justice not as regional systems operating in parallel, but as one national ecosystem with shared standards, seamless interfaces, and coordinated goals," he said.
He emphasised how the role of technology in the judiciary has evolved over time.
"Technology is no longer merely an administrative convenience. It has evolved into a constitutional instrument that strengthens equality before the law, expands access to justice, and enhances institutional efficiency," he said, highlighting how digital tools can bridge gaps in the judicial system.
Kant pointed out that technology enables the judiciary to overcome the limitations of physical distance and bureaucratic hurdles.
"It allows the judiciary to transcend physical barriers and bureaucratic rigidities to deliver outcomes that are timely, transparent and principled," he said, adding that the effective use of technology can modernise the delivery of justice and make it more accessible to citizens across the country.
The CJI called for implementing a "unified judicial policy".
He said India's judicial system has long been shaped by its federal structure, and different high courts have their own practices and technological capacities.
"India's vast diversity has led to different high courts evolving their own practices, administrative priorities and technological capacities. This variation, though natural in a federal democracy, has resulted in uneven experiences for litigants across the country," he said.
Kant underscored that predictability is crucial for building trust in the judicial system.
"A core expectation citizens place upon the courts is predictability," he said, adding that citizens should not only expect fair treatment but also consistency in how cases are handled across the country.
He pointed to the potential of technology in improving predictability.
"Technology enables us to track systemic delays and make problems visible rather than concealed," he said.
By identifying areas where delays occur, such as in bail matters or cases involving certain types of disputes, courts can take targeted action to address these issues and improve efficiency, Kant said.
The CJI explained that data-driven tools could identify the reasons behind delays or bottlenecks, allowing for faster, more focused solutions.
"Technology enables prioritisation by flagging sensitive case categories, monitoring pendency in real time and ensuring transparent listing protocols," he said.
Justice Surya Kant also discussed the importance of prioritising urgent cases where delays could result in significant harm. He highlighted his recent administrative order that ensures urgent cases, such as bail petitions or habeas corpus cases, are listed within two days of curing defects.
"Where delay causes deep harm, the system must respond with urgency," he stated, explaining that technology can help courts identify and expedite such cases.
Kant also raised the issue of the clarity of judicial decisions.
He noted that many litigants, despite winning cases, often struggle to understand the terms of their judgment due to complex legal language.
"Although the orders had gone in their favour, they remained unsure of what relief they had actually secured because the language was too technical, vague or evasive to understand," he said.
He advocated for more uniformity in how judgments are written.
"A unified judicial approach must therefore extend to how we communicate outcomes," he said.
The CJI also discussed the role of AI and digital tools in improving case management. He pointed to the potential of AI-based research assistants and digital case management systems to streamline judicial processes.
"Emerging technological tools are now capable of performing once-unthinkable functions. They can highlight missing precedent references, cluster similar legal questions, and simplify factual narration," he said, explaining how these technologies can help judges make more consistent decisions.
He also highlighted tools like the National Judicial Data Grid and e-courts, which are already helping to standardise processes like case filings and tracking.
Kant reiterated that the integration of technology into the judicial process is not just about improving efficiency but about upholding the integrity of the system and strengthening public trust.
"The measure of innovation is not the complexity of the software we deploy, but the simplicity with which a citizen understands the outcome of their case and believes that justice has been served," he said.
