BENGALURU: CM Siddaramaiah instructed district commissioners and police chiefs of all districts to effectively implement the law brought through the Karnataka Micro Loan and Small Loan (Prevention of Coercive Actions) Ordinance 2025.
He warned that if any incident of harassment to borrowers is reported, the DC and the SP of the respective district will be directly held responsible. Holding a meeting with DCs, police commissioners and SPs through video conference on Saturday evening, the CM directed them to ensure that the purpose of introducing the new law is not defeated.
He asked them to immediately put an end to the harassment by lenders using rowdy elements to recover loans. Further, he instructed them to take steps to close down finance companies that are operating without valid registration.
“There should be continuous vigil against unlicensed microfinance companies. Also, it should be ensured that licensed firms are operating as per RBI guidelines. Criminal cases should be filed against those indulging in forceful recovery of loans,” he directed.
Further, he asked the SPs to register suo motu cases if they come across incidents of harassment by moneylenders. “It has come to my notice that after the new law is brought, such cases have drastically come down in many districts. By implementing the law effectively, such incidents must be completely stopped,” the CM instructed.