On December 15, the Andhra Pradesh legislative assembly cleared a bill to regulate microfinance institutions (MFIs) in the state. The bill replaces an ordinance issued in October following 54 suicide deaths allegedly due to coercive methods of loan recovery by MFIs (see ‘Death by Default’, Down To Earth, November 30, 2010). The bill mandates MFIs to be registered with the district authority to collect installments at the panchayat office and restricts...

The sentencing of Dr. Binayak Sen involves unverified charges, and unreasonable and unconstitutional findings. The constitutional validity of the charges of sedition and conspiracy that were used to implicate rights activists such as Binayak Sen merely for their anti-establishment political thoughts needs to be challenged. The action ridicules the constitutional guarantee of freedom of expression. The sections of the Indian Penal Code that deal with “conspiracy to wage war against the government”...

After Congress chief Sonia Gandhi mooted a five-point plan at the recent AICC plenary session to put in place a system to confront corruption, the Centre is considering an ordinance to tighten the anti-corruption regime against politicians. The Congress core group on Friday discussed the possibility of the new law which would tighten the rules to punish corrupt politicians and counter the popular belief that the system was created to benefit...

Confusion continues to reign in the debate on microfinance that has unfolded following the promulgation of the Andhra ordinance, soon to be replaced by Andhra Pradesh Micro Finance Institutions (Regulation of Money Lending) Act, 2010. A key confusion has been that microfinance is a major instrument of poverty alleviation. Going by the available scientific evidence and agreement among scholars, to-date, there exists no compelling study linking the expansion of microfinance to...

The government will shortly set up an anti-corruption mechanism in the backdrop of scandals in which the Opposition has targeted Prime Minister Manmohan Singh. As legislative measures will be required to introduce certain provisions, it can even pilot an ordinance. Sources said the Prime Minister was giving “serious thought” to this mechanism with a blueprint having already been prepared, incorporating the suggestions given by Congress president Sonia Gandhi at the party...