AP High Court adjourns hearing on microfinance ordinance till Friday

Microfinance Focus, Oct 20, 2010: The Andhra Pradesh High Court has today adjourned the hearing of the petition filed by MFIN (Microfinance Institutions Network) against the microfinance ordinance issued by AP government last week. The hearing is adjourned till Friday, 22nd of Oct.

MFIN also conducted a board meeting today to discuss the current crisis, the issues around it and to look at ways forward. When asked about the outcome of the meeting, MFIN’s CEO, Mr. Alok Prasad said, “It is a very dynamic situation and it is too early to comment”.

MFIN was also supposed to talk to RBI representatives earlier during the day but for some reasons the meeting was postponed for an undecided date.

Along with MFIN, SKS Microfinance and a group of borrowers have also filed a petition against the ordinance in the AP High Court.

SKS has also sent a letter to Bombay Stock Exchange seeking legal clarification as to whether the ordinance will apply to NBFC (Non-Banking Financial Companies) MFIs as SKS is not an NBFC as defined under the Sec 58 A of the RBI Act 1934 as outlined in the ordinance.

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