Bengaluru, Feb 3 (IANS): The Congress government in Karnataka stated on Monday that microfinance companies are using rowdies to harass and threaten people, and their activities will be curbed.
Speaking to reporters in Bengaluru, Deputy Chief Minister D.K. Shivakumar addressed the issue of harassment by microfinance companies, stating, “My government will take action to protect the poor. To correct these injustices, we are passing an ordinance. We are working on it and will grant more powers to the police. These activities will be curbed, and microfinance companies will no longer be able to exploit people.”
He further added, “They are taking the law into their own hands, which is unacceptable. We are taking action.”
When asked about the continued harassment by microfinance companies despite government warnings, he responded, “Several FIRs have been registered in Bidar, Belagavi, Mysuru, Bengaluru, Ramanagara, and other places. The Chief Minister has issued directives on this matter, and the Minister for Cooperation has also taken action.”
“Orders have been issued, and the ordinance is ready. It will be sent to the Governor in a day or two. The poor must be protected, they cannot be exploited by microfinance companies charging exorbitant interest rates. We have received reports that these companies are threatening people and sending rowdies to their homes. To address this, we have established a helpline in every district,” he stated.
“I urge all party workers to inform the helpline set up in the Deputy Commissioners’ Office if they come across any such harassment. Once the CM resumes duties in a day or two, we plan to convene a meeting with Deputy Commissioners and Superintendents of Police,” Shivakumar appealed.
“We will ensure protection for the people. The ordinance will soon reach the Governor, and the cabinet has already made a decision in this regard,” he added.
Earlier, Karnataka Chief Minister Siddaramaiah assured action against microfinance companies and urged people to file complaints if they faced harassment from these firms.
CM Siddaramaiah assured the public, saying, “File a complaint with the police, the government stands with you.”
He further emphasised, “No one should resort to suicide due to the illegal collection practices of microfinance institutions. If you face harassment, file a complaint, and we will take legal action.”
The Chief Minister also promised that the Karnataka government would take strict legal action against microfinance institutions that violate Reserve Bank of India (RBI) regulations, charge excessive interest rates, or operate illegally. He assured that a directive would soon be issued to regulate these firms.