Karnataka cabinet nod for bills against loan sharks

BENGALURU: Despite concerns raised by state governor Thaawar Chand Gehlot, the Karnataka cabinet on Thursday approved amendments to two key bills, strengthening penalties against cooperative societies and pawnbrokers charging exorbitant interest rates.
Following last week's

microfinance regulatory ordinance

, the state cabinet cleared amendments to

Exorbitant Rate of Interest Act

in the cooperative sector and Pawnbrokers Regulatory Act, increasing imprisonment terms and penalties for violations.
"The amendments are consequential in nature, as they follow the microfinance regulatory ordinance passed earlier this week. While they are not part of the ordinance, it is a decision to strengthen these laws as they are related to the same," HK Patil, state's law and parliamentary affairs minister, said.
The Microfinance Regulation Bill had already set stringent terms of up to 10 years in prison and a fine of Rs 5 lakh for violators.

The cabinet also discussed the "transfer of development rights" (TDR) dispute with Mysuru royal family, following a Supreme Court decision awarding Rs 3,000 crore worth of TDR.
"The cabinet is in favour of protecting and safeguarding the interests and property of the state. We will take a decision accordingly," Patil said.