BENGALURU: The state government will resend the draft Karnataka Microfinance (Prevention of Coercive Actions) Ordinance-2025 along with the clarifications sought by Governor Thaawar Chand Gehlot to the Raj Bhavan on Monday.
The governor had sent the draft ordinance back to the government on Friday, stating that it may have a negative impact on the business prospects of the state.
Ghelot had advised the government to present it in the upcoming budget session in both houses. The governor had also objected to certain issues, including the penalty and punishment.
Law Minister HK Patil had stated that the proposed ordinance does not curb one’s basic right and it has not neglected the interest of lenders and restricted loan recovery. He said unregistered or unlicensed lenders cannot give loans or levy compound interest or penalty interest. Such loans cannot be given under law, and such cases cannot be taken up in courts either.
The communication was sent to the Chief Minister’s Office, which approved the clarifications given by Patil. Sources from Patil’s office said they are resending the draft ordinance to the governor’s office on Monday for approval.