The Karnataka government has approved a 'One Time Settlement' (OTS) scheme to waive interest on loans of the Minority Development Corporation (KMDC). This has created a political controversy, with the opposition alleging that it is appeasement politics. The recent cabinet approval for the One Time Settlement (OTS) scheme to waive interest on loans given by the Minority Development Corporation between 2013-14 and 2018-19 has now become a controversy. The opposition has sparked off a firestorm over this, alleging that the state government is ignoring other communities, including farmers and backward classes, by waiving loan interest only to minorities. They have also accused the government of playing appeasement politics. The original loan amount is Rs 981 crore, of which only Rs 98.18 crore has been recovered so far. The remaining Rs 714.13 crore is still pending. Thus, the statement that the 1.94 lakh beneficiaries who have taken loans from KMDC under the proposed scheme can repay only the principal amount with a complete waiver of interest has been the subject of much debate.