File cases against 'inhuman' MFIs: CPI

Communist Party of India state secretary K Narayana on Friday demanded that the state government file criminal cases against Micro Finance Institutions which resort to coercion and use ‘inhuman’ methods to recover loans extended to poor and downtrodden families.

Talking to media persons, Mr Narayana demanded that the government file criminal cases against those micro finance firms, which fleece customers with exorbitant interest rates and lead them to commit suicides.

He alleged that the firms are first encouraging people to take loans and later forcing them to pay loans with heavy interests. Unable to pay the loans, the people are committing suicides, the veteran Communist leader stated.

Mr Narayana also appealed to government to impose ban on those finance institutions and cancel their licenses.

If the government did not impose ban on such finance institutions, the CPI would intensify its agitation across the state, the CPI leader warned.