Corruption in govt leading to incidents like harassment of borrowers: Pralhad Joshi

'Laws should be enforced impartially and the recovery agents and their personnel should be dealt with a stern hand. The Police should be given a free-hand,' Prahlad Joshi.

Mysuru: Incidents like harassment by microfinance agencies, leading to some suicide cases, are increasing because the Karnataka State government is involved in corruption, said Union Minister Pralhad Joshi.

Speaking to media persons, in Mysuru, on Monday, Joshi said, “There is information that the finance companies are causing trouble to the people, borrowers, under police protection. But, I do not accuse the police, in this matter. Such things happen when the State government is corrupt”.

He said, “Registered microfinance institutions are subject to Reserve Bank of India (RBI) guidelines. The State government must verify this. Chief Minister Siddaramaiah should take strict action against those who take the law into their own hands. Laws should be enforced impartially and the recovery agents and their personnel should be dealt with a stern hand. The Police should be given a free-hand. A committee should be formed, with honest officials, to tackle the issue”.

Joshi said, “The RBI guidelines specify a limit on the percentage of interest to be charged on loans. But, some unregistered finance entities are operating in Karnataka, exploiting and harassing people. The State governments must strictly control Non-Banking Financial Companies (NBFCs). There is corruption in this sector. It has been one and a half years since the Congress came to power in Karnataka. Whatever happens in the state, they blame the previous BJP and Central government. Then, what is their responsibility?”

“The CM and his ministers should stop making baseless statements against the opposition parties and the Centre. Instead, they should do good work, as the people have voted them to power. But, the Congress leaders are involved in power struggle,” Joshi said.

Evading probe

Joshi said, Siddaramaiah is trying to evade investigation in the alleged Mysuru Urban Development Authority (MUDA) scam.

“The CM appealed before the High Court, against the Governor's order. However, the High Court did not overturn the Governor's action. Even though the Court stated that the Chief Minister has violated rules in the case, Siddaramaiah continues in power, which is unethical,” Joshi said.