Karnataka CM Siddaramaiah Assures Action Against Microfinance Firms, Urges Public to File Complaints

Mysuru: Karnataka Chief Minister Siddaramaiah has assured the public that the state government will take action against microfinance institutions accused of illegal practices and harassment. Speaking in Mysuru on Friday, CM Siddaramaiah urged people facing harassment from microfinance companies to file complaints with the police, assuring them that the government is with them.

Chief Minister’s Assurance on Microfinance Regulation

CM Siddaramaiah emphasized, “No one should resort to suicide due to the illegal collection practices of microfinance institutions. The government is with you. If you face harassment, file a complaint. We will take legal action.” He further assured that the Karnataka government would take strict legal action against microfinance companies that violate Reserve Bank of India (RBI) regulations, charge exorbitant interest rates, or engage in illegal activities.

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Government to Regulate Microfinance Firms

The Chief Minister confirmed that a directive would soon be issued to regulate microfinance institutions in the state. This move comes in response to the rising concerns over the burden placed on borrowers by high-interest rates, which often lead to financial distress and extreme measures, including suicides.

CM Responds to BJP’s “Goonda Raj” Allegations

Responding to the BJP’s claims of “goonda raj” (lawlessness) in Karnataka, CM Siddaramaiah explained that people often resort to loans from microfinance firms and private moneylenders who charge interest rates of 28-30 percent annually. This practice has resulted in immense stress on borrowers. “Microfinance institutions are charging high-interest rates and using intimidation tactics, which is causing distress among the people,” he said, adding that the state government will soon issue strict regulations to address these issues.

Call for Social Change in Line with Basavanna’s Ideals

In addition to addressing the microfinance issue, CM Siddaramaiah spoke at the Shivaratri Shivayogi Jatra Mahotsava in Suttur, Mysuru, where he reflected on the teachings of Basavanna, the 12th-century philosopher and social reformer. He emphasized the need to eliminate caste and religion-based discrimination, aligning with the Indian Constitution’s core values of equality and secularism.

CM Siddaramaiah also highlighted the ongoing relevance of Dr. B.R. Ambedkar’s vision, particularly regarding the importance of economic and social freedom. He criticized caste-based discrimination and superstitions, urging society to align with the progressive ideals of Basavanna and Ambedkar.

The Guarantee Scheme and Economic Empowerment

CM Siddaramaiah concluded by defending his government’s guarantee schemes, which he claimed were designed to provide financial stability to poor and middle-class families. He pointed out that the BJP, which had initially criticized these schemes, was now attempting to replicate them in states under its rule.

Key Points:

• CM Siddaramaiah urges public to file complaints against microfinance firms involved in illegal practices.
• Government to take legal action against microfinance institutions violating RBI guidelines.
• Directive to regulate microfinance institutions to be issued soon.
• CM Siddaramaiah responds to BJP’s “goonda raj” allegations, defends government actions.
• Emphasis on implementing Basavanna’s ideals of equality and social mobility.