SKS Microfinance Ltd did not get any immediate relief from the Supreme Court in its petition against Andhra Pradesh Microfinance (Regulation of Money-lending) Act, 2010.
“The Supreme Court has directed SKS Microfinance to plead their case before the High Court only,” a senior official in the Department of Rural Development, Government of Andhra Pradesh, told Business Line here on Tuesday.
The Hyderabad-based SKS filed a petition in the apex court in May 2010 challenging the AP Act, which brought to a halt the operations of SKS in the State.
“Our contention that the petition was not maintainable on simple procedural grounds as a case has also been pending in the AP High Court proved to be correct,” the official said.
The Supreme Court, however, directed the Andhra Pradesh High Court to decide on the validity of AP Act before December 31.The AP MFI Act came in the wake of uproar over harassment of clients by recovery agents and collection of high interest rates.