Karnataka Deputy CM: Action Against Rowdy Harassment by Microfinance Firms
Click to start listening
Synopsis
The Karnataka government is taking serious measures against microfinance firms that are reportedly using rowdies to threaten individuals. Deputy Chief Minister D.K. Shivakumar emphasized the need for legal action to protect the vulnerable and curb exploitation by these companies.
Key Takeaways
- Karnataka government acts against microfinance harassment.
- Deputy CM vows to protect the poor from exploitation.
- Ordinance to enhance police powers against rowdy behavior.
- Helpline established for victims of microfinance threats.
- Strict action promised against firms violating RBI regulations.
Bengaluru, Feb 3 (NationPress) The Congress administration in Karnataka announced on Monday that microfinance organizations are employing rowdies to intimidate and threaten individuals, and their practices will be addressed.
During a press briefing in Bengaluru, Deputy Chief Minister D.K. Shivakumar highlighted the problem of intimidation by microfinance firms, stating, “My government is committed to safeguarding the underprivileged. To rectify these wrongs, we are enacting an ordinance. We are enhancing police authority to tackle these issues. These harmful practices will be curtailed, and microfinance companies will be prevented from taking advantage of individuals.”
He further remarked, “They are unlawfully enforcing their will, which is intolerable. We are initiating appropriate measures.”
When questioned about the persistent intimidation from microfinance firms despite government alerts, he replied, “Numerous FIRs have been lodged in Bidar, Belagavi, Mysuru, Bengaluru, Ramanagara, and other regions. The Chief Minister has issued orders on this issue, and the Minister for Cooperation has also taken action.”
“Instructions have been disseminated, and the ordinance is prepared. It will be presented to the Governor shortly. The poor must be defended; they should not be subjected to exploitation by microfinance companies demanding exorbitant interest rates. We have received reports indicating that these companies are threatening individuals and dispatching rowdies to their residences. To combat this, we have established a helpline in each district,” he declared.
“I encourage all party members to report any such intimidation to the helpline established in the Deputy Commissioners’ Office. Once the Chief Minister resumes his duties in a couple of days, we aim to convene a meeting with Deputy Commissioners and Superintendents of Police,” Shivakumar urged.
“We will guarantee the safety of the populace. The ordinance will soon be forwarded to the Governor, and the cabinet has already reached a conclusion regarding this matter,” he added.
Previously, Karnataka Chief Minister Siddaramaiah pledged action against microfinance firms and urged individuals to report any harassment they encountered from these companies.
CM Siddaramaiah reassured the public by stating, “Lodge a complaint with the police; the government supports you.”
He also stressed, “No one should contemplate suicide due to the unlawful collection tactics of microfinance institutions. If you experience harassment, please file a complaint, and we will pursue legal measures.”
The Chief Minister additionally guaranteed that the Karnataka government would enforce strict legal measures against microfinance institutions that breach Reserve Bank of India (RBI) regulations, impose excessive interest rates, or operate unlawfully. He confirmed that a directive would be issued soon to regulate these entities.
