Debt Relief Act to Exclude Licensed Pawn Brokers
We hereby request the honorable Chief Minister of Karnataka, to exclude license holding pawn brokers from coverage of Karnataka Debt Relief Act -2018. Disruption to gold loaning business which provides emergency liquidity in rural places, towns and cities will be akin to 'Demonetization'.
This is will likely have a major negative impact on Pawn Brokers licensed under the law of land who provide liquidity in emergency 12hrsX7 days at interest rates lower than NBFCs. Many of pawn shop owners have a huge leverage (debt) to service.
Debt waiver will not only lead substantial difficulty to him to conduct his business but may also force him out of business and in extreme cases flee the place of business impacting many other non-eligible debtors.
This law is brought out by previous government in Karnataka only as a political revenge against minority community (Jain) assuming them to a major supporter of BJP India.
We sincerely urge Chief Minister to kindly save Karnataka from major economic stress in rural places and towns that is likely from disrupting pawn brokers business operations.
We prey the current government should re-consider the bill to exclude license holding pawn brokers who are conducting their operations abiding by the law of the land.
Karnataka Pawn Brokers Association