LoP R Ashok at a press meet at Vidhana Soudha on Monday
LoP R Ashok at a press meet at Vidhana Soudha on Monday (Photo| Nagaraja Gadekal)

Karnataka Government didn’t release money, people had to borrow from microfin firms: LoP Ashoka

This resulted in people turning to microfinance institutions and getting caught in debt trap.
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BENGALURU: Leader of Opposition in the assembly R Ashoka on Monday alleged that the state government’s failure to disburse loans under various schemes forced people to borrow from microfinance companies.

“A total of Rs 1,700 crore should be given to corporations, but a mere Rs 643 crore has been released. This means there is a deficit of Rs 1,055 crore for all corporations. This money could have been given to people as loans, while at the same time, microfinance institutions have stepped in,” he said while addressing the media at Vidhana Soudha.

He alleged that the government failed to disburse loans to different boards & corporations, including those meant for the welfare of SC/ST and OBC communities. This resulted in people turning to microfinance institutions and getting caught in debt trap.

“The state has become the suicide capital under the Congress government. People are taking loans from microfinance companies because of the sins of this government. If the government itself had provided loans, people would not have committed suicide,” he stated.

“Rowdies in the illegal microfinance business were quiet for some time. But now they have jobs because of the Congress government,” he complained.

He put forth statistics comparing the grants released by the previous BJP government and the Congress government. The BJP government had provided Rs 60 crore in 2022-23 for the Ganga Kalyan Yojana under the Dr BR Ambedkar Development Corporation, whereas the Congress government released a mere Rs 40 crore in 2024-25.

Under the self-employment scheme, it was Rs 100 crore versus Rs 45 crore, he claimed. The BJP government gave Rs 110 crore for the Tanda Development Corporation’s self-employment scheme, but the Congress government has given Rs 60 crore.

If the BJP gave Rs 100 crore to the Karnataka Adi Jambava Development Corporation, Congress has given Rs 50 crore, he elaborated. “In addition, money has been frozen in Valmiki ST Development Corporation due to corruption,” he pointed out.

“DCC banks have suffered losses because CM Siddaramaiah promised a loan waiver. What Prime Minister Narendra Modi said that if Congress comes to power, they will snatch ‘mangalsutra’ of women has now come true. If women really got the money from Gruha Lakshmi, why would they go to microfinance companies,” he asked.

He felt it is too late for Siddaramaiah to bring in a new law to protect borrowers. “The people have been sent out of their homes without giving notice. The police who should have taken action have formed a nexus with finance institutions,” he alleged.

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