By Talha Hussain Gulbargavi

Bangalore: In a development which has Exposed the anti-minority attitude of Karnataka State Bommai Government, The Karnataka Minority Development Corporation (KMDC), which was set up to improve the social, educational and economic status of the minority community and the minority along with the forward communities, is all set to lose its status as a non-banking financial company. The underlying reason for the loss of NBFC status is that the corporation’s asset and income ratios are lower than the minimum required. It is well known that the government has neglected to take appropriate steps to get the NBFC registration back despite information from RBI.

  The underlying reason for the loss of NBFC status is that the corporation’s asset and income ratios are lower than the minimum required. It is well known that the government has neglected to take appropriate measures to get NBFC registration back.

The Regional Directors of the Reserve Bank of India have written a semi-government letter to the Chief Secretary to the Government on October 25, 2021. (No.; DO.FIDD (BG) N. S 294/02/03/051 / 2020-21 DATE 25.10.2021) Similarly, ISN Prasad, Additional Secretary to the Government of the Department of Economy, wrote to the Secretary to the Government of the Department of Minority Welfare, Hajj and Waqf on 29 November 2021 (A letter number; FD-CMM / 40/2021). Although RBI had written the letter multiple times, Minister Shashikala Jolle did not take appropriate action in this regard, it is learned. It is understood that the state govt has not taken action even after writing the letter four times. A note sheet for the letter written by RBI is available at the-file.in

The letter shows that the corporation is not interested in regaining NBFC status and registration. The regional directors of the Reserve Bank of India had also written the letter on March 2 before writing it in October. It is known, however, that the letter stated that the corporation had not taken any action in this regard.  The Karnataka Minority Development Corporation Limited does not follow the core business norms of NBFC and has lost NBFC status due to property income ratios falling below the minimum requirements, according to the note sheet.

Karnataka Minority Development Corporation was founded on 7th February 1986. The main objective of the Corporation as stated by itself on its website, is to extend loan facility to the poorest of the poor among minorities so as to enable them to become self-reliant and also to provide social justice, infrastructure, education and employment. It is a state-owned enterprise. The corporation, which has a share capital of crores of rupees, works under the Government of Karnataka’s Department of Minorities GOKDOM.  The corporation is self-financing giving out subsidy schemes, awareness, labor force loans, small loans, ganga kalyana, farm land purchase, margin money lending on housing loan, special development of Christian community, home purchase, interest subsidy on housing loan, national minority development and Has devised plans for a finance corporation.

Past Expenditures: according to the the interim report submitted to the Fifteenth Assembly by the Minority Welfare Committee of Backward Classes of Karnataka, the Corporation had released 1,068 crore rupees in 2015-2016, out of which 976 crores had been spent. Form the 1,527 crores which were released in 2016-17, 1,424 crores was pent. From the 2,191 crores which were released in 2017-18, 2,116 crores were spent. Under the Knowledge scheme, 330 crores were released in 2017-18, from which 263.94 crores were spent.

Commenting on the loss of accreditation, Riyaz Khateeb, Rights activist from Gulbarga, questioned the silence of the Muslim legislators.

Note: (an earlier version of the news mentioned that the KMDC has already lost the NBFC Status, whereas a deeper reading and consultation has shown that the NBFC Status is not lost yet, but it is almost ste to lose the status given the procedure.)