Ex-CM Bommai accuses Congress govt of failing to control micro finance firms

Hubballi (Karnataka), Jan 23 (PTI) Former Karnataka Chief Minister and BJP MP Basavaraj Bommai on Thursday accused Siddaramaiah-led Congress government in the state of losing control over microfinance companies that is taking advantage of prevailing poverty in the state.

He alleged that the companies are snatching away the mangal sutras of many women and creating a situation where many families have left their homes and people have committed suicide.

Speaking to reporters here, Bommai said the government has failed to enforce the law.

"There is no fear among these (microfinance) institutions. They have let lose the rowdies to recover money. On one hand, the government boasts of its women empowerment schemes, while on the other, the government is not able to control microfinance companies, which are taking away mangal sutras from women," he alleged.

According to Bommai, when H D Kumaraswamy was the chief minister, he had promulgated a law to control those who charge high interest. It was stayed in the court.

He demanded that the government should look into it (stay order) and take strict action and control microfinance companies.

Meanwhile, the Microfinance Industry Network (MFIN) on Thursday dismissed reports about alleged harassment by microfinance companies in the state, claiming that a small section of "ill-informed" individuals with the aid of unauthorised entities were indulging in "unscrupulous" rumourmongering.

Recently, various organisations also staged protests in different parts of the state condemning the atrocities and oppression carried out by microfinance companies and demanded action against them.

According to the police, on January 20, a 60-year-old woman in Ramanagara district near Bengaluru died by suicide after being allegedly harassed by loan recovery agents.

In another incident, a 50-year-old woman from the same district ended her life due to alleged harassment by a microfinance company after she was unable to repay the loan amount of Rs 1 lakh she availed through the company. PTI AMP KH