Bihar assembly clears six reform bills to woo investors, curb MFI harassment; private college fees overhauled

Patna: The state assembly on Thursday passed six bills, including two separate legislations aimed at creating a business-friendly atmosphere in the state by removing stringent provisions in the departments concerned to attract investors for setting up industrial units and undertaking other economic activities. Another Bill seeks to prevent harassment of borrowers by micro finance institutions (MFIs) in cases of delayed loan repayment.With regard to promoting a business-friendly environment, the assembly passed the Bihar Jan Vishwas (Provision Amendment) Bill, 2026, which was moved by deputy chief minister Vijay Kumar Sinha on behalf of industries minister Dilip Kumar Jaiswal.Sinha said controversial sections and sub-sections in the rules of the urban development and housing department, forest, environment and climate change department, commercial taxes department and certain other departments — violations of which, or even minor errors committed by investors, could lead to imprisonment of up to seven years or harassment of those engaged in trade and business — would now be removed.“The govt aims at creating a business-friendly atmosphere in the state and to also promote unfettered business and trade activities. Therefore, the investment thwarting sections and sub-sections of the rules will have to be removed,” Sinha said.Moving the Bihar Micro Finance Institutions (Rules Regarding Loaning and Eradication of Oppression) Bill, 2026, finance minister Bijendra Prasad Yadav said MFIs had been charging highly exorbitant rates of interest and that the Reserve Bank of India (RBI) guidelines concerning MFIs were not sufficiently clear.In this context, MFIs will be required to seek prior permission from the finance department before commencing operations. Special courts, presided over by first grade judicial magistrates, will be established in every district to hear disputes relating to interest and cases involving suicide. The Bill also aims to prevent oppression of borrowers and their children or family members by representatives of MFIs. Interest rates charged by MFIs will be made judicious and transparent. Oversight has been assigned to the institutional finance director, who will act as the nodal officer in this regard. The registration process for MFIs to begin operations will be completed within 90 days.Under the Bihar Private Commercial Educational Institutions Bill, 2026, the govt will regulate fees charged by such institutions from admission to examination. A high-level nine-member committee will be constituted for this purpose. The minister in charge, Shrawan Kumar, said a prominent educationist or a retired IAS officer would head the committee. Secretaries of the education department, health department and others nominated by the govt will serve as members.Moving the Bihar Adhivakta Kalyan Nidhi (Amendment) Bill, 2026, rural development minister Shrawan Kumar said stamp duty would be increased from Rs 25 to Rs 50 to augment the welfare fund for lawyers after retirement or death. The committee responsible for disbursing the welfare fund is headed by the advocate general.Regarding the Bihar Secretariat Services (Amendment) Bill, 2026, parliamentary affairs minister Vijay Kumar Chaudhary said direct recruitment has been undertaken to fill section officer posts in the state secretariat. The probation period for confirmation has been reduced from two years to one year.Moving the Bihar State Madarsa Board (Amendment) Bill, 2026, education minister Sunil Kumar said complaints relating to the dismissal of teaching and non-teaching staff in madarsas would now be heard and decided by the board. The strength of the managing committee has been increased to 17 members.