Paladugu demands criminal cases against MFIs

Demanding stringent action against Micro Finance Institutions (MFIs) for committing irregularities and harassing women beneficiaries, which finally lead them to commit suicides, MLC Paladugu Venkata Rao on Tuesday urged the government to file criminal cases against such firms and dealt with them according to the prevailing laws.

Talking to media persons at CLP office, Mr Venkata Rao demanded that the government direct the finance firms to recover their lending money under Revenue Recovery Act without resorting to ‘Rowdyism and Dadagiri’.

He urged the government to take suo moto notice and file cases against firms based on the media reports and not wait for complaints to be filed by the victims.

Though the government has implemented schemes and policies for the benefit of women and rural folk, why they are approaching MFIs, Mr Venkata Rao wondered.

He urged the government to study the reasons for the suicides among rural folk and women to ascertain the facts as the MFIs were exploiting and luring them into taking loans at hefty interest rates.