BENGALURU: Congress MLC Ramesh Babu moved a private member’s bill, “The Karnataka Protection of Pledged Gold Borrowers’ Bill, 2025”, in the Legislative Council on Friday.
He said non-banking financial companies (NBFC) and private finance institutions in the state are not providing an opportunity to borrowers to redeem their pledged gold.
MLC Ramesh Babu demanded that 180 days’ prior notice be given to the pledger before auctioning his/her gold jewellery.
“For gold jewellery worth Rs 1 lakh, a loan of Rs 10,000 to Rs 15,000 is given. While the price of gold increases, the loan amount remains the same. Lenders cheat borrowers while weighing their gold and devalue it giving various reasons,” he said.
The legislator further said that the poor who pledge their gold will never be able to redeem it. He demanded that the auction of pledged gold be conducted only through licensed auctioneers approved by the government.
It should be held in the presence of a representative of the local tahsildar or an officer authorised by the government, he said.
Meanwhile, Legislative Council Chairman Basavaraj Horatti said that a debate on the Bill will be held in the House next week.