Draft ordinance to rein in microfinance companies sent for CM's nod: Minister H K Patil

Gadag (Karnataka), Feb 2 (PTI) Karnataka Minister H K Patil on Sunday said the draft ordinance to protect the borrowers from microfinance companies is ready and has been sent to Chief Minister Siddaramaiah for his approval.

Once the Chief Minister gives his nod, the ordinance will be sent to Governor Thaawarchand Gehlot, he added.

The microfinance companies are recovering money from small borrowers in an inhumane way and they are giving immense torture to the borrowers, Patil told reporters here in the district headquarters town of Gadag.

In this background, the state government has prepared the draft ordinance to stop the torturous recovery of money, the Minister, who holds the law and parliamentary affairs portfolio, said.

"A suitable draft ordinance is ready and has been sent to the Chief Minister. Once he approves it, it will be sent to the Governor," Patil said.

The state government came into action after several people in rural areas died by suicide and fled their houses due to the atrocities of the recovery agents of microfinance companies.

The Chief Minister had in the past said that these microfinance companies outsource the recovery job to another agency, which uses force.

Meanwhile, Kannada activist Vatal Nagaraj staged a demonstration in Mysuru against the atrocities of microfinance companies.

He alleged that these microfinance companies are operating brazenly because the politicians have given them their black money to run businesses on their behalf. PTI GMS ADB

Source: PTI