C.M Siddaramaiah told stern action will be taken on complaints against erring firms

Amidst large-scale complaints about harassment by micro finance companies in Karnataka, the State Cabinet will discuss a draft Bill to regulate the activities of microfinance companies at its next meeting on January 30, even as Chief Minister Siddaramaiah said that stern action will be taken on complaints filed by victims of harassment.

While the C.M said that a helpline would be set up in the offices of deputy commissioners to monitor and help victims to file complaints, his Cabinet colleagues also weighed in on the issue.

“Stern action will be initiated against microfinance firms if complaints are filed against them by the victims,” CM said.

It may be noted that on Saturday, the State government decided to promulgate an Ordinance titled Karnataka Microfinance Institutions (Regulation of Money Lending) Bill after a meeting with representatives from microfinance companies. The Chief Minister had also questioned the dubious methods of lending and recovery process at a meeting with them.

The draft Bill would be ready over the next four days, and it would come for discussion at the next Cabinet meeting. Law and Parliamentary Affairs Minister H.K. Patil indicated

“We have circulated the draft among experienced police officers seeking their feedback. They should not later complain about powers not being given to act. We will also hold discussions with Home Minister (G. Parameshwara), Revenue Minister (Krishna Byre Gowda), and Deputy Chief Minister D.K. Shivakumar before it is given to the Chief Minister,” Mr. Patil told media at Gadag.

“The problem is that the companies have outsourced collection work to rowdy sheeters,” he said.

His statements come in the light of harassment being meted out to those who have availed themselves of loans from microfinance companies, across the State. Cases of suicide have also been reported, while in some cases people have moved out of their villages owing to harassment by recovery agents.

, Urban Development Minister Byrathi Suresh threatened that criminal cases would be filed against those trying to recover money forcibly from women and the poor Notices will be issued to those troubling people who are already in financial distress . Public Works Minister Satish Jarkiholi told reporters in Belagavi told that the matter should be handed over to the CID.

Cooperation Minister K.N. Rajanna said that the Bill would be moved during the next legislature session. “There is a need to curb the high interest rates. The new legislation is under discussion. The non-banking financial institutions secure licence from RBI and State government can only intervene when they harass people.”

Blackmailing victims besides harassing them had come to light and that it was not acceptable. The police had been asked to act against the harassers, told Labour Minister Santosh Lad.

Most of the non-banking financial institutions are the agents of all parties leaders whereas in some cases the political leaders are also running such finance as information reported.let us wait and see the cabinet meeting. for BNN