NPN

The Karnataka government has approved the 'One Time Settlement' (OTS) scheme to waive interest on loans of Minority Development Corporation (KMDC). This has created a political controversy, with the opposition alleging that it is appeasement politics. Out of the Rs 714.13 crore. pending, at least Rs 150 crore. is expected to be recovered from the implementation of this scheme. Despite opposition from the finance department, KMDC has defended its decision. Bengaluru, February 09: The recent cabinet approval for the One Time Settlement (OTS) scheme to waive interest on loans given by the Minority Development Corporation between 2013-14 and 2018-19 has now become a controversy. The opposition has sparked a firestorm over this, alleging that the state government is ignoring other communities, including farmers and backward classes, by waiving loan interest only to minorities. They have also accused the government of playing politics of appeasement. 714.13 crores still outstanding The principal loan amount for this period is 981 crores, of which only 98.18 crores have been recovered so far. The remaining 714.13 crores are still outstanding. Therefore, the fact that the 1.94 lakh beneficiaries who have taken loans from KMDC under the proposed scheme can repay only the principal with a complete waiver of interest has been the subject of much debate. On the other hand, according to the available information, the Finance Department has expressed opposition to this OTS scheme. If interest is waived in this way in one corporation, such a demand may be expressed by the other corporations as well. It has warned that this may affect the government's revenue. BJP sparks against the government On the other hand, the opposition BJP has attacked the state government, asking why the government is not providing similar facilities to the beneficiaries of Ambedkar Development Corporation, Valmiki Corporation and other backward class corporations. Former CM and sitting MP Basavaraj Bommai also took a dig at the state government, expressing his anger that it is indulging in vote bank politics instead of resolving the widespread economic problems. KMDC defends decision However, only KMDC is defending its decision, expressing confidence that it can recover at least Rs 150 crore if OTS is implemented. Even if about Rs 14 crore is waived off as interest, the corporation has argued that it is better to recover the principal amount than the entire loan outstanding.