Karnataka To Finalise Draft Ordinance To Protect Borrowers From Microfinance Companies

In the wake of alleged atrocities committed by the microfinance companies on the borrowers, CM Siddaramaiah on Monday convened an urgent meeting.

When Home Minister was told that the menace of microfinance companies continues, Parameshwara said they have outsourced firms to recover money.

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Karnataka Home Minister G Parameshwara on Wednesday said a meeting will be held later in the day to finalise the draft ordinance to protect the interests of borrowers from the microfinancing companies in the state. Once the draft is finalised, it will be immediately tabled in the cabinet meeting on Thursday and would soon be sent to Governor Thaawarchand Gehlot, he said.

"Today there is a meeting in which Law and Parliamentary Affairs Minister H K Patil, Revenue Minister Krishna Byre Gowda and I will attend. We will discuss and finalise the draft ordinance," the minister told reporters here.

In the meantime, instructions have been given to the Deputy Commissioners and Superintendent of Police of all the districts to control the menace of microfinance companies, Parameshwara said.

"We will provide a helpline number for the borrowers. In our draft ordinance, we have recommended more powers to the Deputy Commissioners and formation of a wing," he said.

When the home minister was told that the menace of microfinance companies continues, he said they have outsourced firms to recover money. These outsourced firms behave like "rowdies", which should not be done and we will take action against the microfinance companies, Parameshwara said.

To a question as to when the ordinance will be finalised and come into effect, he said if the draft is finalised today, then it will be presented in the cabinet tomorrow itself.

On the possibility of a second international airport for Bengaluru near Tumakuru, the minister said he also wished that the new airport should be built in his home district as it would help travellers from north Karnataka to land there.

In the wake of alleged atrocities committed by the microfinance companies on the borrowers, Chief Minister Siddaramaiah on Monday convened an urgent meeting. The microfinance companies were told not to harass borrowers.

According to the CM, seven cases have been registered against microfinance companies in the state. 

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)