Haveri (Karnataka), Feb 3 (PTI) – A 42-year-old barber, Malatesh, tragically ended his life in Karnataka’s Haveri district, reportedly due to relentless harassment by microfinance companies, police confirmed on Monday.
The incident took place on Sunday night within the jurisdiction of Rane Bennur police station. Authorities stated that Malatesh, who ran a small barber shop, died by hanging after facing immense pressure from multiple microfinance firms from whom he had taken loans.
According to his family, Malatesh had borrowed approximately ₹6.45 lakh from four different microfinance companies. Despite making regular repayments in installments, he was allegedly subjected to continuous harassment, pushing him to take the extreme step.
Following the complaint, police have registered a case under Section 108 (abetment of suicide) of the Bharatiya Nyaya Sanhita (BNS) against the four microfinance firms involved. Investigations into the matter are currently underway.
“Our government will not allow microfinance companies to take the law into their own hands and exploit the poor through coercive recovery methods. We will empower the police to take strict action against such practices,” Shivakumar stated.
Addressing concerns about continued harassment despite government warnings, he revealed that multiple FIRs had already been filed against microfinance companies in Belagavi, Bidar, Mysuru, and Ramanagara districts.
"The chief minister and the cooperative ministers have issued stern warnings. An ordinance is ready and will be sent to the Governor in a couple of days. Additionally, we have launched helplines in every district headquarters, and the chief minister will soon hold discussions with senior police officials to further strengthen enforcement," he added.
The tragic incident in Haveri highlights the growing concerns over unethical debt recovery practices by microfinance firms in the state. With the government stepping up regulatory measures, how effectively these policies will safeguard vulnerable borrowers remains to be seen.
The incident took place on Sunday night within the jurisdiction of Rane Bennur police station. Authorities stated that Malatesh, who ran a small barber shop, died by hanging after facing immense pressure from multiple microfinance firms from whom he had taken loans.
According to his family, Malatesh had borrowed approximately ₹6.45 lakh from four different microfinance companies. Despite making regular repayments in installments, he was allegedly subjected to continuous harassment, pushing him to take the extreme step.
Following the complaint, police have registered a case under Section 108 (abetment of suicide) of the Bharatiya Nyaya Sanhita (BNS) against the four microfinance firms involved. Investigations into the matter are currently underway.
Government Moves to Crack Down on Microfinance Harassment
Reacting to the growing menace of aggressive loan recovery tactics, Karnataka Deputy Chief Minister D K Shivakumar announced on Monday that the state government is preparing an ordinance to curb the 'torture' of borrowers by microfinance companies.“Our government will not allow microfinance companies to take the law into their own hands and exploit the poor through coercive recovery methods. We will empower the police to take strict action against such practices,” Shivakumar stated.
Addressing concerns about continued harassment despite government warnings, he revealed that multiple FIRs had already been filed against microfinance companies in Belagavi, Bidar, Mysuru, and Ramanagara districts.
"The chief minister and the cooperative ministers have issued stern warnings. An ordinance is ready and will be sent to the Governor in a couple of days. Additionally, we have launched helplines in every district headquarters, and the chief minister will soon hold discussions with senior police officials to further strengthen enforcement," he added.
The tragic incident in Haveri highlights the growing concerns over unethical debt recovery practices by microfinance firms in the state. With the government stepping up regulatory measures, how effectively these policies will safeguard vulnerable borrowers remains to be seen.
