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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'Rear-guard action': BJP over Mamata accepting sports minister's resignation after Messi event
New Delhi (PTI): The BJP on Tuesday alleged that West Bengal Chief Minister Mamata Banerjee's accepting Aroop Biswas' resignation as the state sports minister is nothing but a "rear-guard action" to douse public anger over the mismanagement of football icon Lionel Messi's event last week.
BJP co-in-charge for West Bengal Amit Malviya alleged that this is also an "open confession" that the Messi event fiasco was not accidental but a government-manufactured disaster, borne out of the poor governance of Banerjee, her ministers and the state bureaucracy.
Banerjee on Tuesday accepted Biswas' resignation as the sports minister in the wake of the controversy over the mismanagement of football icon Messi's event last week, a senior leader of the ruling TMC said.
Biswas, who had written to the chief minister seeking to be relieved of his responsibilities as sports minister, will continue as a cabinet minister, retaining charge of the power department.
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Reacting to the development, Malviya said in a post on X, "TMC Sports Minister Aroop Biswas resigns after the Messi fiasco and Mamata Banerjee accepts it in record time."
"Do not mistake this for accountability; this is nothing but a rear-guard action to douse public anger. anger! This is not 'Raj Dharma'," he added.
The BJP leader alleged that the incident was the outcome of "loot" of common people which is "so synonymous" with the TMC.
The incident was also the outcome of the "shameless VIP culture that TMC thrives on and deep-rooted cronyism promoted by Banerjee," he charged.
Malviya further alleged that Biswas' resignation exposes a "collective failure of Mamata Banerjee, her partisan bureaucracy, and her crony cabinet".
"This is a symbolic sacrifice, a political hoax, soon to be buried under layers of bureaucracy, with no justice, no accountability, and no remorse," the BJP leader said, adding, "No resignation will bring back the time lost, the money wasted, or the stolen chance for football lovers to witness Messi in Kolkata."
