Seven Microfinance Firms Booked for Alleged Harassment Leading to Woman’s Suicide
- Posted on January 24, 2025
- News
- By Arijit Dutta
- 28 Views
A 50-year-old Karnataka woman died by suicide, citing harassment by microfinance companies over delayed loan repayments. An FIR has been filed against seven firms. The case highlights concerns about predatory lending and the need for stricter regulations in the microfinance sector. Investigations are ongoing.
An FIR has been filed against seven microfinance companies in Karnataka after a 50-year-old woman died by suicide, allegedly due to harassment over delayed loan repayments. The incident occurred on January 20 in Ramanagara district, prompting a police investigation under sections 108 (abetment to suicide) and 190 (offense by unlawful assembly).
The deceased had taken multiple loans totaling over ₹4.5 lakh from firms including Aashirvaad Micro Finance, Sathya Micro Capital Finance, Unity Small Finance, Suryodaya Finance, IIFL Samastha Finance Limited, L&T Financial Services, and BSS Micro Finance Limited. Her son alleged that company representatives threatened and abused her when the family sought more time to pay instalments. According to the complaint, some representatives even told her to “go and die.”
Responding to the incident, Rama Kamaraju of the Microfinance Industry Network (MFIN) emphasised that authorised microfinance institutions adhere to strict guidelines and help borrowers improve their financial conditions. He called the incident an isolated case of “unauthorised practices” and assured action against violations.
Former Karnataka Chief Minister Basavaraj Bommai criticised the state government for its failure to regulate microfinance institutions. He accused the firms of exploiting borrowers and demanded strict enforcement of laws to curb predatory practices.
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The case has sparked widespread debate on the regulation of microfinance firms and their recovery methods, bringing into focus the balance between financial assistance and borrower protection. Investigations are ongoing.
