Bengaluru, Feb. 8 -- Karnataka Governor Thaawarchand Gehlot has sent back the Karnataka Micro Loan and Small Loan (Prevention of Coercive Actions) Ordinance, 2025, to the state government, expressing concerns that while it aims to protect the borrowers, it lacks provisions safeguarding the lenders.

Confirming the development, the chief minister's office (CMO) stated that the governor found the prescribed punishment - 10 years of imprisonment and a Rs.5 lakh fine - "excessive." The government indicated that Gehlot recommended a detailed legislative debate on the ordinance rather than rushing its enactment. Given that the budget session is scheduled for March, he advised that the matter be addressed during the session for a more comprehens...