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 16,2025

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Melkar (Bantwal): The 9th Annual Day celebration of SMR Public School, titled “EXCELLENTIA”, was held on December 15 with great enthusiasm and dignity, marking a significant milestone in the institution’s journey towards academic excellence and holistic development.

The programme was inaugurated by Dr. U. T. Iftikar Ali. The chief guests were Dr. Akhtar Hussain, Mr. P. Moosabba Beary, Mr. Zakaria Jokattre, and Dr. T. M. Abdul Rahuf—whose inspiring addresses motivated the students and appreciated the school’s contributions to education.

Mr. Abdul Nasir, Mr. Ibrahim Gadiyar, Mr. Razak Golthamajal, Mr. Sali Koya, Mr. Arshad Hussain, Mr. Ismail Balanoor, Mr. Feroz Bawa, Mr. Sahul Hameed, Mr. Abubakkar, Mr. Hameed K. Mani, Mr. Abdul Majeed (Principal, Melkar Women’s College), and Mr. Abdul Lathief (Former Principal, Melkar Women’s College) were the guests of honour.

The Annual Report was presented by the Headmistress, Ms. Fathimathul Zaheera, highlighting the school’s achievements and progress during the academic year. The Presidential Address was delivered by the Chairman of SMR Public School, Dr. Haji S. M. Rasheed, who emphasised the vital role of education in shaping students’ futures and stressed the importance of discipline, dedication, and consistent effort in achieving 100 per cent academic results.

Secretary of SMR Public School, Mr. Rifath Ahmed, and PTA President, Mr. Sandeep Kumar, were also present on the occasion.

The Annual Day celebration showcased the collective efforts of students and teachers and reaffirmed the school’s commitment to quality education and all-round development. The programme concluded with a vote of thanks, expressing gratitude to all dignitaries, parents, and well-wishers for their support. The 9th Annual Day—EXCELLENTIA—was a memorable and successful event, leaving a lasting impression on everyone present. 

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December 20,2025

Mangaluru, Dec 20: City Police Commissioner Sudheer Kumar Reddy has issued a high-alert warning to vehicle owners regarding a surge in cyber fraud targeting those looking to pay traffic violation fines. Fraudsters are reportedly exploiting recent government discount schemes on traffic penalties to deceive citizens.

The Scam: How Fraudsters Strike

Criminals are using SMS, WhatsApp, and social media to circulate suspicious links and APK files (Android application packages). They claim these apps allow users to pay e-challans at a discount.

•    Device Hacking: Downloading these unauthorized apps gives hackers full access to the victim's smartphone.

•    Financial Theft: Once the phone is compromised, fraudsters intercept OTPs and personal data to drain bank accounts.

•    Phishing Sites: Fake websites mimicking official portals are also being used to harvest banking credentials.

Already, two residents within Mangaluru city limits have reported significant financial losses after falling victim to these fraudulent apps.

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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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