'No coercive loan recovery by microfinance firms till probe finishes', says Karnataka minister Jarikholi

Investigations in progress would take about another week to progress clearly and until then microfinances have been asked not to harass beneficiaries for recovery of loans, the minister said.

Belagavi: Public Works Department and District Incharge Minister Satish Jarkiholi said Tuesday that they have directed the micro finances who have given loans to women not to harass them for recovery until the investigations into the beneficiaries being cheated by those who had played role of middlemen/women were completed.

About 40 microfinances have given loans to the tune of Rs 100 crore to more than 15,000 women in the district and many of the women beneficiaries have been cheated.

Jarkiholi held a meeting with the District Administration officials, Police Department officials and representatives of microfinances at the Deputy Commissioners office here on Tuesday.

He told reporters that more than 15,000 women who had availed loans from microfinances have been cheated in about four taluks in the district. "Two middlemen/women have been arrested and search for two more was in progress. Money which had been credited to accounts of beneficiaries has got transferred to third party accounts which was being investigated," he said.

"There were complaints of microfinances harassing beneficiaries for repayment of loans, we have asked them not to coerce them until the investigations reveal something substantial. Those who can repay the loans voluntarily can do so, but those who have been cheated want investigations and justice. Its for the first time that such kind of cheating has come to the fore in the district. Microfinances have informed that they have disbursed loans to the tune of Rs 100 crore for over 15,000 beneficiaries," he stated.

Women beneficiaries informed that their signatures were availed citing that subsidy would be given to them, but it was 100% loans. Investigations in progress would take about another week to progress clearly and until then microfinances have been asked not to harass beneficiaries for recovery of loans, Jarkiholi said.

On a query about BJP demanding resignation of Rural Development and Panchayat Raj Minister Priyank Kharge over suicide of contractor Sachin Panchal at Bidar, he said, name of the minister does not figure in the suicide note but in the case of former deputy chief minister K S Eshwarappa, his name was written in suicide note by contractor Santosh Patil who had died by suicide.