BJP Accuses Karnataka Police of Aiding Microfinance Firms
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Synopsis
R. Ashoka, Karnataka's Opposition Leader, alleges that the state's police are colluding with microfinance institutions, leading to harassment and even suicides among vulnerable populations, while calling for a judicial inquiry to address these issues.
Key Takeaways
- Karnataka Police accused of supporting microfinance firms.
- Suicides linked to microfinance debt harassment.
- Demand for a judicial investigation into the situation.
- Siddaramaiah's government criticized for inaction.
- Only 18 out of 60 microfinance institutions are legally registered.
Mandya, Feb 6 (NationPress) R. Ashoka, the Karnataka Leader of the Opposition, asserted on Thursday that the Karnataka Police have facilitated microfinance institutions in their efforts to intimidate residents in the state.
“While vulnerable individuals are suffering and even dying due to the relentless pressure from microfinance institutions, Chief Minister Siddaramaiah has chosen to ignore the situation,” he stated.
Ashoka further claimed that the police are also in collusion with microfinance institutions.
“When these firms forcibly take possession of homes, the police assist in evicting families rather than offering protection. This behavior is completely unacceptable,” he added.
He also called for a judicial inquiry to seek justice for those who have tragically lost their lives due to the stress inflicted by these institutions.
Ashoka visited the bereaved family of a mother and son in Konnapura village, Mandya, who tragically died by suicide as a result of microfinance debt harassment, and offered his condolences.
Addressing the press, he remarked: “It has been a month since Siddaramaiah vowed to implement an ordinance to combat microfinance harassment. In Mandya district alone, six Dalit families have been compelled to abandon their homes. Many more across the state may have been forced to leave their villages due to similar pressures. The government has failed to enact the ordinance, leading to more suicides.”
He shared that in Konnapura, a mother named Prema and her son Ranjith took their own lives by jumping into a lake after they could not repay their microfinance loan.
“The Chief Minister, who positions himself as pro-poor, has remained silent in the face of such calamities. In Konnapura, 24 microfinance institutions, including Chamundeshwari, Navachethana, Suryodaya, Unity, and Pragathi, are lending at an annual interest rate of 12 percent. Each borrower has nine guarantors, and if one fails to repay, the others become responsible. The pressure has become unbearable, resulting in tragic suicides,” he noted.
Ashoka pointed out that while there are 60 microfinance institutions operating in Mandya, only 18 are legally registered.
“The remaining institutions are linked to criminal elements. The Tahsildar and police should have intervened in every village, but they have neglected their duty. A judicial probe, led by a judge, is essential to deliver justice to the victims. Unlicensed microfinance institutions need to be identified and dealt with severely,” he concluded.
