Karnataka mulls curbing financial firms to avert farmer suicides

May 18, 2016

Bengaluru, May 18: Non Banking Financial Companies (NBFC), which lend money to farmers and the general public at exorbitant rates of interest, may be in for trouble. The state government is likely to move the High Court for removal of a stay order that prevents it from taking any “coercive action” against such companies.

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On April 5, 2016, the government took the first step towards tightening the noose around these companies by withdrawing exemption given to four of them. Accordingly, Manappuram Finance (Tamil Nadu) Ltd, Coimbatore, Manappuram General Finance and Leasing Limited, Thrissur, Kerala, Muthoot Finance Ltd and Muthoot Fincorp Ltd, Bengaluru, are no longer exempt from Section 2(10) (iv) (b) of the Karnataka Money-Lenders (KML)?Act, 1961, which seeks to crack down on moneylenders. The government action is based on recommendations of the Registrar of Cooperative Societies.

The government is under pressure to avert further farmer suicides. As many as 1,136 farmers have committed suicide in Karnataka, mainly for being unable to repay the loans taken from the NBFCs at high rates of interest, as per the records of the Registrar of Co-operative Societies.

The government feels its hands are tied in the matter since most financial companies claim jurisdiction under the Reserve Bank of India, saying they follow the Fair Practices Code for Lenders and are governed under Chapter 3(B) of the RBI Act, 1934. The companies also argued before the High Court that the RBI Act “overrides” state laws such as the KML Act, 1961, and the Karnataka Prohibition of Charging Exorbitant Interest Act, 2004. Hence, these laws do not apply to them, they maintained.

There are 17,027 NBFCs in Karnataka, according to a source in the Department of Cooperation. Section 28 of the KML Act, 1961, empowers the government to fix the interest rates from time to time. The present interest rate is 14% for secured loans and 16% for unsecured loans. In reality, however, the companies charge between 20% and 35%, making it extremely difficult for the borrower to repay.

There have been many police complaints against the NBFCs. The High Court also heard many petitions and ordered the government not to take any “coercive action” against them until it adjudicates in the matter.

Similar petitions were filed before the High Courts in Kerala and Gujarat. While the Kerala High Court favoured the NBFCs, the latter ruled against them. The matter is now before the Supreme Court, said the source.

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December 17,2025

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Melkar, Dec 17: The 17th Annual Day and Graduation Ceremony of Melkar Women’s PU and Degree College, themed “Fusion-2K25,” was celebrated with dignity and enthusiasm, marking a significant milestone in the institution’s academic journey. The programme reflected the college’s steadfast commitment to academic excellence, character building, and the holistic development of students.

The event was inaugurated by Mr. Asif Mohammed, whose presence greatly enriched the occasion. The celebration was further graced by the chief guests Mr. P. B. Ahmed Mudassir and Mr. Nissar Fakeer Mohammed, along with the distinguished guests of honour Mr. B. A. Nazeer and Mr. Ibrahim Gadiyar. In their inspiring addresses, the guests encouraged the graduating students and appreciated the dedicated efforts of the management, faculty, and students.

The annual report was presented by the Principal, Mr. Abdul Majeed S, highlighting the institution’s academic progress, notable achievements, and extracurricular accomplishments during the academic year.

The presidential address was delivered by the esteemed Chairman of Melkar Women’s PU and Degree College, Dr. Haji S. M. Rasheed, who emphasized the vital role of education in empowering women and shaping responsible citizens. He also stressed the importance of discipline, dedication, and perseverance in achieving success.

Cultural programmes and academic recognitions formed an integral part of the celebration, showcasing the talents and achievements of the students. The graduation ceremony was a proud moment for the outgoing students as they were formally conferred degrees and wished success in their future endeavours.

Ms. Mashmooma Fathima served as the Master of Ceremonies. The welcome address was delivered by Ms. Fathima Nida, and the programme concluded with a vote of thanks proposed by Ms. Ayisha Suhana.

The event successfully achieved its objectives and was highly appreciated by the guests and attendees.

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December 20,2025

Mangaluru, Dec 20: The Mangaluru City Police have issued a detailed traffic advisory ahead of the inaugural ceremony of Karavali Utsava, which will be held at the Karavali Utsava Ground on Saturday.

The festival will be inaugurated at 6:00 pm by Dakshina Kannada District Minister Dinesh Gundu Rao. Cultural and public programmes will be held at the venue every evening and will continue until January 2.

According to City Police Commissioner Sudheer Kumar Reddy, parking of vehicles is strictly prohibited on both sides of the road from Lalbagh to Karavali Utsava Ground. Visitors are requested to park their vehicles only at designated parking areas.

To help the public, traffic signboards and parking guidance flex boards have been installed along the routes leading to the venue. The police have urged commuters and visitors to follow these instructions to ensure smooth traffic movement.

Designated Parking Locations

•    Urwa Market Ground – Cars
•    Gandhinagar Government School (near Press Club) – Two-wheelers and cars
•    Ladyhill Church parking area – Two-wheelers and cars
•    Canara School Ground, Mannagudda – Two-wheelers and cars
•    Thimmappa Hotel premises – Two-wheelers and cars
•    Scout and Guide Bhavana premises (behind Karavali Utsava Grounds) – Two-wheelers
•    Urwa Market Road – Two-wheelers
•    Hat Hill Road – Two-wheelers

The police have appealed to the public to cooperate by following traffic rules and parking guidelines to avoid inconvenience during the festival.

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December 7,2025

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Mangaluru, Dec 7: A rare bamboo shrimp has been rediscovered on mainland India more than 70 years after it was last reported, confirming for the first time the presence of Atyopsis spinipes in the country. The find was made by researchers from the Centre for Climate Change Studies at Sathyabama Institute of Science and Technology, Chennai, during surveys in Karnataka and Odisha.

The team — shrimp expert Dr S Prakash, PhD scholar K Kunjulakshmi, and Mangaluru-based researcher Maclean Antony Santos — combined field surveys, ecological assessments and DNA analysis to identify the elusive species. Their findings, published in Zootaxa, resolve decades of taxonomic confusion stemming from a 1951 report that misidentified the species as Atyopsis moluccensis without strong evidence.

The shrimp has now been confirmed at two locations: the Mulki–Pavanje estuary near Mangaluru and the Kuakhai River in Bhubaneswar. Historical specimens from the Andaman Islands, previously labelled as A. moluccensis, were also found to be misidentified and actually belong to A. spinipes.

The rediscovery began after an aquarium hobbyist in Odisha spotted a shrimp in 2022, prompting systematic surveys across Udupi, Karwar and Mangaluru. Four female specimens were collected in Mulki and one in Odisha, all genetically matching.

Researchers warn the species may exist in very small, vulnerable populations as freshwater habitats face increasing pressure from pollution, sand mining and infrastructure development. All verified specimens have been deposited with the Zoological Survey of India for future reference.

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