Bhatkal: Assistant Commissioner Mr. Sajid Ahmed Mulla on Sunday, announced in a pressmeet that the Debt Relief Act had come into effect on  23 July 2019, that would help ease the financial burden of the poorer sections of society. 

Under the Karnataka Debt Relief Act, 2018, a debtor means a landless agricultural labourer, a person belonging to the weaker section and a small farmer.", he added.

The act was a “one time relief" for all those who have availed loans from pawn brokers, money lenders and other informal sources of credit, he said.

Debtors, whose annual income does not exceed Rs1.2 lakhs per annum, can take any relevant document and submit it before the Assistant Commissioner office in the next 90 days to avail the benefits of the scheme, he said. 

“Any borrowed amount before the Act came into force, which is from July 23, will be waived. This can mean that the loan can be borrowed many years ago, too,” he said, asserting that there will not be any scope for misuse of the relief measure. 

The Act will not cover liabilities in the form of rent, land revenue arrears, government taxes, wage dues and so on.

The Karnataka Debt Relief Bill, which was passed by the legislature in February this year, has received President Ram Nath Kovind’s assent on July 16. A government order implementing the Act was issued on July 23, which was Kumaraswamy’s last executive decision as chief minister.