Karnataka government’s brazen Muslim appeasement has triggered a political storm after the Siddaramaiah-led Congress government approved an interest waiver on loans taken by minorities, drawing sharp criticism from the BJP, which has accused the state of indulging in “appeasement politics” at the cost of farmers, backward classes and other vulnerable groups.
The BJP on Monday mounted a frontal attack on the Karnataka government over its decision to waive interest on loans, alleging that the move selectively benefits minorities while ignoring the broader distress in the agrarian and informal sectors. The party said the Siddaramaiah government is prioritising vote-bank considerations over equitable, needs-based relief.
According to the BJP, the state is waiving interest only on loans taken by minorities, while farmers, backward classes and other weaker sections continue to struggle without comparable support. The ruling Congress, however, has defended the decision, arguing that the measure will benefit economically weaker sections within minority communities and provide long-pending relief.
Amit Malviya raises questions
BJP IT cell head Amit Malviya took to social media to criticise the move, stating that the Karnataka government has waived interest on loans taken by minorities, a decision that will primarily benefit the Muslim community. He questioned whether government relief should be based on economic need rather than religion, and alleged that the decision amounts to “vote-bank politics funded by public money.” Malviya urged voters not to support the Congress over what he described as discriminatory policy-making.
BJP MLC C T Ravi also questioned the chief minister’s “selective” interest waiver policy, asking why similar relief had not been extended to beneficiaries of the Ambedkar Development Corporation, the Valmiki Corporation and other backward class corporations. “Is appeasing just one community your idea of secularism?” he asked.
Earlier, senior BJP leader and former Chief Minister Basavaraj Bommai, who is also the MP from Haveri, accused the state government of repeatedly resorting to vote-bank politics instead of addressing the wider economic distress facing the state. He said the government should focus on comprehensive relief measures rather than selective interventions.
Cabinet clears OTS scheme
The controversy follows a recent decision by the state cabinet to approve a one-time settlement (OTS) scheme for loans disbursed by the Minority Development Corporation between 2013–14 and 2018–19. The scheme waives interest on these loans with the stated objective of improving recovery. Officials said that against an original principal of ₹981 crore, outstanding dues stand at about ₹714 crore, and the OTS is aimed at facilitating recovery while easing the burden on borrowers.
With the BJP sharpening its attack and the Congress defending the move as targeted welfare, the decision has set the stage for a fresh political confrontation in Karnataka over the balance between social welfare, fiscal priorities and allegations of identity-based policymaking.
