Karnataka Cracks Down on Microfinance Exploitation

Karnataka's Deputy Chief Minister DK Shivakumar announced plans for an ordinance to curb microfinance exploitation. He emphasized empowering police and noted multiple FIRs against microfinance firms. Addressing concerns on state finances and political alliances, he clarified the government's stance amidst ongoing allegations and political dynamics.

In a decisive move to curb microfinance companies' exploitation of the poor, Karnataka Deputy Chief Minister DK Shivakumar revealed that the state government plans to introduce an ordinance aimed at reinforcing police authority. Speaking from his Sadashivanagar residence, Shivakumar underscored the government's commitment to preventing these companies from bypassing legal frameworks and employing coercive tactics.

Addressing persistent incidents despite governmental warnings, Shivakumar reported that numerous FIRs have been lodged against such firms in areas including Belagavi, Bidar, Mysuru, and Ramanagara. Further emphasizing action taken, he mentioned the imminent dispatch of the ordinance to the governor and the establishment of district-level helplines. Meetings are also on the agenda, aimed at coordinating efforts with senior police officials.

When questioned about Union Finance Minister Nirmala Sitharaman's comments, Shivakumar defended the state's fiscal posture, countering claims about debt levels and defending guarantee schemes as policy measures for public benefit. He also responded to inquiry about political realignment with JDS MLAs, denying any current discussions while noting their potential interest in joining a secular party.