Stopping suicides our priority: Karnataka Home Minister on microfinance menace

Bengaluru, Jan 31 (IANS) Karnataka Home Minister G. Parameshwara said on Thursday that the state government's priority is to stop suicides due to alleged harassment by the microfinance companies in the state.

Speaking to reporters in Bengaluru at his residence, Parameshwara said the draft of the ordinance to contain microfinance companies indulging in harassment has been prepared and will be finalised within two to three days.

However, the state Home Minister said he cannot say about the date of the ordinance finalisation.

People carrying out microfinancing through unregistered companies should be monitored to contain the menace, he said.

Sharing an incident of his constituency, Parmeshwara said that a man took a Rs 2.50 lakh loan from a microfinance company and paid back Rs 4.50 lakh, still the firm forced him to pay Rs 80,000 more.

Disappointed, the man deserted the village, however, the microfinance companies locked his house and wrote that he was a defaulter, the Home Minister added.

Parmeshwara said that he ensured action against the persons of the firm concerned, resulting in the disappointed man returning to his house.

"The house was repainted and repaired and handed over to the man. I am visiting this house today. There are many such instances," he underlined.

"We are thinking of a one-time settlement. About Rs 59,000 crore loans are given to people through various channels. We are considering bringing stricter laws. The microfinance companies will approach the court and we have to make a law which does not give them any scope to approach the court," he said.

When asked about the nominations for four MLCs, the state Home Minister said the Cabinet has authorised Chief Minister Siddaramaiah for selection.

"Nominations to Boards and Corporations have been finalised and submitted to the CM and Dy CM. They will have to take action," he said.