Rs 19 crore microfinancing scam rocks Belagavi, four held
BELAGAVI: A massive loan scam has rocked Belagavi district, where more than 7,700 individuals—primarily women—have been defrauded collectively to the tune of approximately Rs 19.35 crore under the pretense of microfinance loan approvals. The police have arrested four persons in connection with the scam from various localities, including Yamnapur, Halbhavi, Kangrali KH and Kangrali BK.
The accused have been identified as Ashwini Holappa Daddi, Holappa Fakirappa Daddi, Shewanti Holappa Daddi and Priyanka Holappa Daddi, all residents of Yamanapur in Belagavi taluk. They were, later, released on bail.
The scam, which allegedly began in Belagavi taluk, has spread across the district and to other parts of Karnataka, said the police. The fraud came to light following a complaint lodged by one Sheikha Kannappa Hanchinmani, a resident of Sonatti village, at the Malmaruti Police Station.
According to the complainant, four individuals from Yamnapur orchestrated the scheme by promising subsidised loans. They lured people by claiming that once a loan was approved, 60% of the amount would be taken by them as part of the scheme, while the remaining 40% would be provided to the borrower as a subsidy.
They further reassured the victims that they would eventually repay the full loan amount on the borrower’s behalf, the complainant said. However, after the loans were approved and the funds disbursed, the fraudsters disappeared — leaving the victims saddled with the full repayment responsibility, including the 60% they never received.
The scam has left many women in financial distress, with accumulating interest compounding their burden. Investigations are on to determine the full extent of the fraud and trace any additional accomplices.