Karnataka CM Siddaramaiah Convenes Meeting With Ministers, Officials On Harassment Of Borrowers By Micro Finance Cos and Private Money Lenders

Home Minister G Parameshwara, Revenue Minister Krishna Byregowda, Cooperation Minister KN Rajanna and principal secretaries and secretaries have been asked to attend the meeting.

Bengaluru: Karnataka Chief Minister Siddaramaiah has convened a meeting of his ministers and senior officials on January 25 to discuss the flurry of reports pertaining to harassment and torture the people of the state have been facing by micro finance companies and private money lenders.

Home Minister G Parameshwara, Revenue Minister Krishna Byregowda, Cooperation Minister KN Rajanna and principal secretaries and secretaries of these departments have been asked to attend the meeting to be held at 11 am at Krishna, the official residence of the Chief Minister. Over the last few months, Karnataka has been witnessing a rise in cases regarding coercive actions of microfinance companies and private money lenders on gullible borrowers. Several incidents of borrowers mainly labourers, leaving their villages and ending their lives by suicide after being unable to suffer the harassment have also been reported from different places. There were also complaints that loan recovery agents stalked women family members of borrowers.

On January 20, 60-year-old agricultural labourer Yoshodamma of Thimmaiahnadoddi in Ramanagara district ended her life by suicide allegedly due to harassment by loan recovery agents of a microfinance company. As per the FIR booked by Ramanagar Rural police against seven microfinance companies, hours before Yoshodamma's death, representatives of two microfinance companies visited her house and abused her for not repaying the loan amount. Unable to bear the insult, she ended her life.

In a similar incident, 50-year-old Leelavathi from Mylanayakanahalli in Channaptna taluk in Ramanagar district died by suicide unable to bear the harassment from money lenders. Police said the deceased's family claimed she had taken a loan of Rs 1 lakh from a microfinance company.

Besides suicides, mass exoduses have also been reported from different places over the last few months. In Chamarajanagar district, hundreds of borrowers from many villages reportedly deserted their homes following harassment by lenders. In Kodagu district, around 30 tribals fled their villages fearing coercive action by finance companies. Similar incidents were reported from Haveri, Belagavi and other districts.