Congress leaders on Sunday took exception to Governor Thaawarchand Gehlot returning the Ordinance on microfinance institutions (MFIs) and accused the BJP of intervening in his decision.
Guarantees’ Implementation Committee chairman H.M. Revanna said the Ordinance had been prepared under the guidelines issued by the Reserve Bank of India to curb lending at a higher interest rate, besides preventing harsh recovery methods that involved goondas and recovery process being initiated in the night. People are upset with the current situation… and the Governor returning the Ordinance was not a good move, he said.
The Governor, citing provisions that allegedly amounted to excessive regulatory provisions and higher punishment, has returned the Ordinance, asking the government to pilot a Bill during the Budget session and discuss it in the legislature. Home Minister G. Parameshwara has said the government would address the concerns raised by the Governor.
Former MP and KPCC vice-president V.S. Ugrappa told presspersons here that the BJP had brought pressure on the Governor to stall the Ordinance that was meant to protect borrowers from economically weaker sections. The BJP feared that the Congress government would take credit for the Ordinance, and hence stalled it, he added.
