Karnataka Guv Gehlot approves ordinance to curb microfinance harassment

Bengaluru, Feb 12 (PTI) Karnataka Governor Thaawarchand Gehlot has given his assent to the ordinance to check harassment by microfinance companies to its borrowers, said government sources on Wednesday.

Following reports about many people dying by suicide, fleeing homes and tortured by the recovery agents of the microfinance companies operating in the state, the government had brought the Karnataka Micro Finance (Prevention of Coercive Actions) Ordinance 2025, which had penal provisions of jail term up to ten years and fine up to Rs five lakh.

The Governor on February 8 had returned the ordinance saying that in its current form, the lenders, who are also part of the society, are being done a great injustice.

Gehlot had also given reasons and suggestions while returning the ordinance. Addressing his concerns, the Karnataka government again sent the ordinance on February 10.

On Wednesday, the Governor gave his assent to the ordinance. It is learnt that he has asked the government to table the bill in the next legislative session. PTI