Karnataka LoP Ashoka says 30 died by suicide after harassment by microfinance firms; demands action

The LoP said the ordinance has been delayed and incidents of people dying by suicides have been reported across the state.
BJP leader R Ashoka meets the family of the woman and her son who died by suicide due to harassment from a microfinance firm, in Malavlli taluk on Thursday.
BJP leader R Ashoka meets the family of the woman and her son who died by suicide due to harassment from a microfinance firm, in Malavlli taluk on Thursday.(Photo | Express)
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MYSURU: Leader of Opposition in the Assembly R Ashoka on Thursday met the family of the woman and her son who died by suicide after a microfinance firm seized their house at Konapura village in Malavlli taluk recently, and promised to prevail upon the government to extend all support.

The deceased had taken Rs 6 lakh loan from a microfinance firm which seized their house after they failed to repay the loan. The family members accused the local police of being in nexus with employees of the firm and for forcing the family to leave the house along with a baby during the seizure. Manikya, the daughter of the deceased woman, appealed to the opposition leader for help.

The family also ruled that no minister met them. “We are alive due to help from our relatives. We don’t know how to pull along as we have nothing to fall back on,” said Manikya.

Ashok assured the family that they would stand by them and put pressure on the government to provide them relief. He called Deputy Commissioner Kumar over phone and condemned the behaviour of the local police during the seizure of the house. He also demanded suspension of the women police personnel who dragged the family members out of the house on the pretext of executing court orders. The family members should have been given some time, he said.

Referring to Chief Minister Siddaramaiah’s announcement to push an ordinance to check harassment from microfinance firms, Ashoka claimed that over one lakh people have left their villages, including six families from Konapura village, fearing harassment from micro-financiers. He said the ordinance has been delayed and incidents of people dying by suicides have been reported across the state.

“Chief Minister Siddaramaiah claims to be pro-poor, but has failed to protect the interest of people and instil confidence,” Ashoka said.

He also slammed the opposition leader in the Rajya Sabha Mallikarjun Kharge for failing to raise the issue.

“Around 24 micro-finance firms are operating in Mandya district and lending without any surety as people are not going to banks for loans. Micro-financiers are insisting on exorbitant interests violating the RBI guidelines.

People are being forced to pay the Rs 2,000 given by the government under the Gruha Lakshmi scheme or the firms would tarnish the image of the borrowers and their family members in public. How did the government allow unauthorised micro-finance firms to operate?” he said.

Ashok said for the first time, 30 people have committed suicide due to harassment from micro-finance firms. He said the police and government officials should warn micro-financiers demanding high interest and harassing people and put them behind bars.

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