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 15,2025

Mangaluru police have arrested a 27-year-old NRI on his return from Saudi Arabia in connection with an Instagram post allegedly containing derogatory and provocative remarks about the Hindu religion, officials said on Monday.

The accused, Abdul Khader Nehad, a resident of Ulaibettu in Mangaluru, was working in Saudi Arabia when the post was uploaded, police said.

A suo motu case was registered at the Bajpe police station on October 11 after an allegedly offensive post circulated from the Instagram account ‘team_sdpi_2025’. Police said the content was flagged for being provocative and derogatory in nature.

During the investigation, technical analysis traced the Instagram post to Nehad, who was residing abroad at the time, a senior police officer said. Based on these findings, a Look Out Circular (LOC) was issued against him.

On December 14, Nehad arrived from Saudi Arabia at Calicut International Airport in Kerala, where he was taken into custody on arrival. Police said further investigation is underway.

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December 16,2025

Mangaluru, Dec 16: The Mangaluru City police have significantly escalated their campaign against drug trafficking, arresting 25 individuals and booking 12 cases under the Narcotic Drugs and Psychotropic Substances (NDPS) Act between November 30 and December 13. The crackdown resulted in the seizure of a substantial quantity of illicit substances, including 685.6 grams of MDMA and 1.5 kg of ganja.

The success of this recent drive has been significantly boosted by the city’s innovative, QR code-based anonymous reporting system.

"The anonymous reporting system has received an encouraging response. Several recent arrests were made based on inputs received through this system, helping police tighten the noose around drug peddlers," said the City Police Commissioner.

The latest arrests contribute to a robust year-to-date record, underscoring the police's relentless commitment to combating the drug menace.

Up to December 14 this year, the police have registered a total of 107 cases of drug peddling, leading to the arrest of 219 peddlers. Furthermore, they have booked 562 cases of drug consumption, resulting in the arrest of 671 individuals.

The scale of the seizure for the year reflects the magnitude of the problem being tackled: police have seized 320.6 kg of ganja worth ₹88.7 lakh and 1.4 kg of MDMA valued at ₹1.2 crore. Other significant seizures include hydro-weed ganja worth ₹94.7 lakh and cocaine worth ₹1.9 lakh, among others.

The Commissioner emphasized a policy of rigorous enforcement: "We ensure that peddlers are caught red-handed so that they cannot later dispute the case or claim innocence."

To counter the rising trend of substance abuse among youth, the Mangaluru City police have rolled out uniform guidelines for random drug testing across educational institutions.

As part of the drive, tests were conducted in approximately 100 institutions, screening an estimated 5,500 to 6,000 students in the first phase. 20 students tested positive for drug consumption during the initial screening.

Students who tested positive have been provided counselling and are scheduled for re-testing in the second quarter. The testing will also be expanded to students not covered in the first phase. In a move to ensure strict implementation, police personnel were deployed in mufti in some institutions. Reiterating a zero-tolerance stance, the Commissioner confirmed that random testing will continue, and colleges have also been instructed to conduct drug tests at the time of admission to deter substance abuse from an early stage.

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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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