Cabinet gives nod for ordinance on micro finance firms; Atheeq to continue as ACS to CM

BENGALURU: The state cabinet, headed by Chief Minister Siddaramaiah, on Thursday approved an ordinance to prevent ‘coercive and inhuman actions’ by micro finance companies, without any changes. The cabinet authorised the CM to issue ‘The Karnataka Micro Finance (Prevention of Coercive And Inhuman Actions) Bill, 2025.

The Bill is aimed at “relieving the economically vulnerable groups and individuals, especially farmers, women and women self-help groups, from the undue hardship of usurious interest rates and coercive and inhuman actions means of recovery by micro finance institutions or money lending agencies or organisations like money lenders, commission agents involved in buying and selling agricultural commodities by accepting agricultural produce from farmers, or money lenders who lend money to poor and extract the principal with interest in form of cash or kind, or shop or commercial establishment or estate entity, for the purpose to create and effective mechanism to regulate the micro finance institutions or money lending agencies or organisations operating in the state of Karnataka and for matters connected therewith and incidental thereto”.

The CM had convened the cabinet meeting to discuss the RBI norms on micro financing and the state’s Bill. Addressing the media after the meeting, Law Minister H K Patil said, “Of late, the harassment by micro finance companies is being debated and the recovery methods are inhuman. Some cases of suicide have also come to light. Hence, we have brought this Bill”.

In other significant decisions, the cabinet approved the continuation of L K Atheeq as Additional Chief Secretary to the CM after superannuation on contract basis till further orders. The cabinet also approved inclusion of 10 villages in Ramanagara district under the Greater Bengaluru Development Authority. These villages are Byramangala, Bannigere, Hosur, KG Gollarapala, Kanchugaranahalli, Aralalusandra, Kempaiahanapalya, Kanchugaranahalli Kaval and Mandalahalli in Bidadi hobli and Vaderahalli in Harohalli hobli.

The cabinet also gave its nod for construction of level crossings at a cost of Rs 83.72 crore on the Hassan-Holenarsipur railway line; solar streetlighting for 50 gram panchayats under the Hombelaku scheme at a cost of Rs 25 crore; bridge across Bhima river near Kadani village in Sindhagi taluk at a cost of Rs 44.5 crore.

It was also decided to withdraw the The Karnataka Municipalities and Certain Other Law (Amendment) Act, 2024, recognise a 8.21 km stretch of the Apsarakonda-Mugali marine biodiversity hotspot at Honnavar in Uttara Kannada district.