BENGALURU, 3 FEB

Deputy Chief Minister DK Shivakumar announced on Monday that the Karnataka government will introduce an ordinance aimed at curbing the exploitation of the poor by microfinance companies engaging in aggressive loan recovery practices. Speaking at his residence in Sadashivanagar, Shivakumar stated that the government would not tolerate harassment and would enable police to take decisive action against offenders.

"Our government will not allow microfinance companies to take the law into their own hands or employ goons for loan recovery," he asserted, emphasising a commitment to protect citizens.

Shivakumar revealed that FIRs have been filed against several microfinance institutions across Belagavi, Bidar, Mysuru, and Ramanagara, following stern directives from the Chief Minister. The ordinance is set to be submitted to the Governor shortly, and local helplines will be established in every district. Responding to recent comments by Union Finance Minister Nirmala Sitharaman regarding state debt, Shivakumar defended Karnataka’s financial management, urging clarity on Centre allocations in the upcoming Union Budget. He called on the Union Government to honour its commitments regarding the Upper Bhadra project.