BENGALURU: Micro, Small, and Medium Enterprises (MSMEs) in Karnataka are facing significant challenges due to government regulations, particularly the mandatory e-Khata system for property registration, said MG Rajagopal, president of the Karnataka Small Scale Industries Association. He also demanded for separate labour policy and other problems to be solved quickly.
The e-Khata system, which was recently made mandatory for selling and buying of properties by the state government, has been causing delays and errors in property registration, severely impacting industrial operations, Rajagopal said on Wednesday.
He said that many entrepreneurs are unable to obtain e-Khata for their properties, especially in the case of private industrial land, due to errors in the system. Some businesses have had to wait years for corrections, exacerbating their financial difficulties.
“Without e-Khata, entrepreneurs cannot register assets for mortgage loans. As a result, banks and financial institutions are refusing to provide loans.”
He also noted that there were several instances of delays in converting manual Khata accounts to e-khata in Panchayat offices, preventing entrepreneurs from conducting essential financial transactions for years.
He urged the state government for urgent action to resolve the e-Khata issues and to decentralise the authority for updating the e-Khata system.