K’Taka Police 'Supported' Microfinance Institutions, Claims BJP

(MENAFN- IANS) Mandya, Feb 6 (IANS) Karnataka Leader of the Opposition R. Ashoka on Thursday alleged that the Karnataka Police "supported" microfinance institutions to harass people in the state.

“Despite poor people dying due to harassment by microfinance institutions, Chief Minister Siddaramaiah has turned a blind eye to the issue,” he claimed.

Ashoka further alleged that the police are also supported microfinance institutions.

"When these companies seize houses, police forcibly evict family members instead of protecting them. This is unacceptable," he claimed.

He also demanded a judicial probe to ensure justice for those who have lost their lives due to the pressure exerted by these institutions.

Ashoka visited the family of a mother and son in Konnapura village, Mandya, who died by suicide due to microfinance debt harassment, and consoled the grieving relatives.

Speaking to the media, he stated: "It has been a month since Siddaramaiah promised to bring an ordinance to curb microfinance harassment. In the Mandya district alone, six Dalit families have been forced to flee their homes. Lakhs of people across the state might have left their villages due to similar issues. The government has failed to implement the ordinance, and as a result, the suicides have not stopped."

He added that in Konnapura, a mother Prema and her son Ranjith ended their lives by jumping into a lake because they were unable to repay their microfinance loan.

"The Chief Minister, who claims to be pro-poor, has remained silent on such tragedies. In Konnapura, 24 microfinance institutions, including Chamundeshwari, Navachethana, Suryodaya, Unity, and Pragathi, have been lending money at an annual interest rate of 12 per cent. Each borrower has nine guarantors, and if one person fails to repay, the others become liable. Unable to bear the pressure, people are dying by suicide,” he said.

He said that there are 60 microfinance institutions operating in Mandya, but only 18 of them are legally registered.

"The rest are controlled by criminal elements. The Tahsildar and police should have taken action in every village, but they failed to do so. A judicial investigation led by a judge should be conducted to provide justice to the victims. Unauthorised microfinance institutions should be identified and strict action should be taken against them," he said.

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