Karnataka Government's Leniency Toward Microfinance Firms Criticized by Kumaraswamy
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Synopsis
Union Minister H.D. Kumaraswamy criticized the Karnataka government for its contradictory approach to women's empowerment and the unchecked operations of microfinance companies, which he claims are harming vulnerable populations.
Key Takeaways
- Kumaraswamy condemns Karnataka's allowance of microfinance companies.
- Highlights the impact on rural women and their communities.
- Calls out the government's inaction despite media coverage.
- Questions the effectiveness of past legislative measures.
- Critiques the current administration's focus on power rather than public welfare.
Mysuru (Karnataka), Jan 24 (NationPress) Union Minister for Heavy Industries and Steel, H.D. Kumaraswamy criticized the Karnataka government, stating, “On one hand, the government professes to empower women by providing them Rs 2,000 under the Gruha Lakshmi scheme. Conversely, it has allowed microfinance companies to operate freely, leading to the destruction of their lives.”
Responding to media inquiries during an event in K.R. Nagar, Kumaraswamy remarked, “Karnataka was once heralded as a model of good governance, but now we are witnessing its demise.”
In his criticism of the government, he remarked, “Those vying for power have achieved nothing for the populace. Just a month ago, the issue of microfinance arose in Chamarajanagar, compelling residents to flee their villages. Despite the long-standing nature of the problem and media coverage, the government has failed to act. Why is that?”
“Rural women, particularly farmers and economically disadvantaged women, are the primary casualties of microfinance companies. Many are forsaking their homes and villages. Who is accountable for this situation?” questioned Kumaraswamy.
“Microfinance companies have proliferated in the state like weeds, functioning unlawfully without any oversight. In 2018, when I formed the government alongside the Congress party, I introduced the Debt Relief Act. The Bill was sanctioned in the legislative session, endorsed by the Governor, and I personally traveled to Delhi to obtain the President’s approval. What has become of it since the new governments took charge?” he expressed with frustration.
Directing his criticism towards Chief Minister Siddaramaiah, he asserted, “You boast of having achieved a status akin to the late CM D. Devaraj Urs, who instituted land reforms in the state. You may remain in power for this term and even the next, but tell us, what tangible benefits have you provided to the people?”
He continued, “At that time, the Kerala government established a commission to tackle the harassment caused by microfinance firms. I was aware of this and intended to study it firsthand. I dispatched a delegation led by my then Cooperative Minister, Bandeppa Kashempur, to Kerala for this purpose. Utilizing that knowledge, I implemented the Debt Relief Act here. What has happened to it since then?” Kumaraswamy probed.
“The Chief Minister has convened a meeting for tomorrow. What actions will you undertake in that meeting? How many lives have been lost? How many individuals have fled their homes and villages? What assistance will you provide to them?” Kumaraswamy queried.
“Officials are powerless to take any action. I spoke with the Mandya Deputy Commissioner. In this district alone, there are 60 microfinance companies. Of these, only 14-15 companies possess licenses, while the majority operate illegally, causing distress to the people,” Kumaraswamy disclosed.
“The populace granted Congress power, expecting progress for the state. However, since assuming power, they have worked to undermine Opposition parties,” the Minister alleged.
