Bengaluru, Jan 24 The Karnataka government is set to hold an emergency meeting on Saturday to discuss and enact a special law aimed at curbing the harassment and exploitation caused by microfinance companies in the state.
Law and Parliamentary Affairs Minister H.K. Patil made this announcement at the Vidhana Soudha in Bengaluru on Friday.
Minister Patil stated, “The state government has taken the issue of harassment by microfinance companies very seriously. Chief Minister Siddaramaiah will hold an emergency meeting on Saturday (January 25) to formulate a special law to address the exploitation of people by these companies.”
He emphasised that the decision would be made in the interest of the public, as the Reserve Bank of India (RBI) and other central agencies have not been able to implement laws to effectively tackle the exploitation and suffering of the common man at the grassroots level.
“We are considering introducing the Karnataka Microfinance Institutions Regulation of Money Lending Bill to address this issue. This will be presented before the Chief Minister, and other related matters will also be discussed. While the police have authority in some cases, there are instances where they lack the necessary powers,” Minister Patil explained.
He further opined that the current laws on this matter are not stringent enough.
The Congress government in Karnataka has come under criticism following a series of suicides and harassment incidents linked to microfinance companies in rural areas across the state.
Union Minister for Heavy Industries and Steel, H.D. Kumaraswamy lashed out at the Karnataka government, saying, “On one hand, the government claims to empower women by giving them Rs 2,000 under the Gruha Lakshmi scheme. On the other hand, it has given a free hand to microfinance companies, which are ruining their lives."
“Rural women, especially farmers and poor women are the primary victims of microfinance companies. Many of them are abandoning their homes and villages. Who is responsible for this?” Kumaraswamy questioned.
“The CM has called for a meeting tomorrow. What will you do in the meeting? How many lives have been lost? How many people have abandoned their homes and villages? What relief will you provide them?” Kumaraswamy questioned.
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