close_game
close_game

Case against 7 microfinance firms over woman’s suicide

By, Bengaluru
Jan 24, 2025 06:58 AM IST

The complainant stated that due to unforeseen circumstances, the monthly instalments were delayed, and company representatives “threatened and abused” his mother

A first information report (FIR) has been filed against seven microfinance companies after a 50-year-old woman died allegedly by suicide accusing the firms of harassing her over loan repayments, police said on Thursday.

A first information report (FIR) has been filed against seven microfinance companies after a 50-year-old woman died allegedly by suicide accusing the firms of harassing her over loan repayments (File photo)
A first information report (FIR) has been filed against seven microfinance companies after a 50-year-old woman died allegedly by suicide accusing the firms of harassing her over loan repayments (File photo)

Ramanagara rural police inspector B Siddaraju said: “On January 20, representatives from Aashirvad Micro Finance and Sathya Micro Capital Finance visited deceased’s house demanding immediate repayment of instalment of the loans.”

“Unable to bear the torture and insult she died by suicide on the same day. We have registered a case under BNS section 108 (abetment to suicide) and 190 (Every member of unlawful assembly guilty of offence committed in prosecution of common ) on the basis of a complaint by the deceased’s son and launched an investigation into the matter,” he said.

He further said that the case has been booked against seven microfinance companies - Aashirvaad Micro Finance, Sathya Micro Capital Finance Limited, Unity Small Finance, Suryodaya Finance, IIFL Samastha Finance Limited, L&T Financial Services, and BSS Micro Finance Limited.

According to the complaint, the deceased had taken multiple loans: 40,000 from Unity Small Finance, 40,000 from Suryodaya Finance, 50,000 from Sathya Micro Capital Finance, 1 lakh from IIFL Samastha Finance Limited, 72,000 from L&T Finance, 1 lakh from Aashirvad Finance Limited, and 50,000 from BSS Micro Finance.

The complainant stated that due to unforeseen circumstances, the monthly instalments were delayed, and that company representatives “threatened and abused” his mother, contributing to her distress.

He added that when they sought more time, the representatives told his mother “to go and die” and also insulted her.

In response to the FIR, Rama Kamaraju, head of state initiatives, Microfinance Industry Network (MFIN), said: “Microfinance institutions not only help in increasing the household income of the borrowers but also educate them about businesses and help them improve their financial conditions.”

“A small section of ill-informed individuals with the aid of unauthorised entities, indulging in unscrupulous rumour-mongering...We wish to assure you all that we follow a very well calibrated advisory approach and have our eye on the ball at all times… We are open to talk and engage on the right forum to address any genuine concerns with regard to the microfinance ecosystem and its operations,” Kamaraju added.

Meanwhile, 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.

“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.

Bommai further said that when HD Kumaraswamy was the chief minister, he had promulgated a law to control those who charge high interest. It was stayed in the court.

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

With PTI inputs

rec-icon Recommended Topics
Share this article
Get Current Updates on India News, Weather Today, Latest News at Hindustan Times.
See More
Get Current Updates on India News, Weather Today, Latest News at Hindustan Times.
SHARE THIS ARTICLE ON
SHARE
Story Saved
Live Score
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Thursday, February 13, 2025
Start 14 Days Free Trial Subscribe Now
Follow Us On