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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News Network
December 19,2025

Mangaluru: In a decisive move to tackle the city’s deteriorating sanitation infrastructure, the Mangaluru City Corporation (MCC) has announced a massive ₹1,200 crore action plan to overhaul its underground drainage (UGD) network.

The initiative, spearheaded by Deputy Commissioner and MCC Administrator Darshan HV, aims to bridge "missing links" in the current system that have left residents grappling with overflowing sewage and environmental hazards.

The Breaking Point

The announcement follows a high-intensity phone-in session on Thursday, where the DC was flooded with grievances from frustrated citizens. Residents, including Savithri from Yekkur, described a harrowing reality: raw sewage from apartments leaking into stormwater drains, creating a "permanent stink" and turning residential zones into mosquito breeding grounds.

"We are facing immense difficulties due to the stench and the health risks. Local officials have remained silent until now," one resident reported during the session.

The Strategy: A Six-Year Vision

DC Darshan HV confirmed that the proposed plan is not a temporary patch but a comprehensive six-year roadmap designed to accommodate Mangaluru’s projected population growth. Key highlights of the plan include:

•    Infrastructure Expansion: Laying additional pipelines to connect older neighborhoods to the main grid.

•    STP Crackdown: Stricter enforcement of Sewage Treatment Plant (STP) regulations. While new apartments are required to have functional STPs, many older buildings lack them entirely, and several newer units are reportedly non-functional.

•    Budgetary Push: The plan has already been discussed with the district in-charge minister and the Secretary of the Urban Development Department. It is slated for formal presentation in the upcoming state budget.

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News Network
December 7,2025

Mangaluru, Dec 7: A 34-year-old fruit and vegetable trader in Mangaluru has reportedly lost ₹33.1 lakh after falling victim to an online investment scam run through a fake mobile app.

Police said the scam began in September, when the victim received a link on Facebook. Clicking it connected him to a WhatsApp number, where an unidentified person introduced a high-return investment scheme and instructed him to download an app.

To build trust, the fraudster asked him to invest ₹30,000 on September 24. The trader soon received ₹34,000 as “profit,” convincing him the scheme was genuine. Over the next two months, he transferred money in multiple instalments via Google Pay and IMPS to different scanner codes and bank accounts shared by the scammers. Between September 24 and December 3, he ended up sending a total of ₹33.1 lakh.

When he later requested a refund of his investment and promised returns, the scammers demanded additional payments, claiming he needed to pay a “service tax” first. Even after he paid a small amount, no money was returned, and the scammers continued pressuring him for more.

A case has been registered at the CEN Crime Police Station.

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News Network
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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