Karnataka High Court upholds microfinance ordinance, 2025

The Karnataka High Court has dismissed a challenge to the Karnataka Micro Loan and Small Loan Ordinance, 2025. The court ruled that the ordinance protects individuals from unsecured micro loans, particularly those with an annual income of Rs 3 lakhs or less. Justice Nagaprasanna stated that the ordinance aims to assist vulnerable groups, such as farmers and workers, from exploitative lending practices. The court found the petitioner's claims about the ordinance being ambiguous and harmful to their business to be unfounded. The government argued that the petitioners were not directly affected by the ordinance. The court emphasized the ordinance's focus on social justice and rejected the petition, stating there was no significant violation of constitutional rights.