Palamu Women Accuse Microfinance Firms of Harassment

Chhatarpur Microfinance Harassment Sparks Police Complaints, Calls for Regulation

In Palamu, Chhatarpur, a surge in complaints against microfinance companies like Kota Finance reveals disturbing trends of harassment and exploitation of villagers. Victims report physical assaults, verbal abuse, and seizure of personal items, signaling an urgent call for stricter regulatory measures.

JAMSHEDPUR – In the latest development from Chhatarpur, Palamu district, villagers have raised serious allegations against multiple microfinance companies, accusing them of employing coercive tactics to recover loans.

These companies, including prominent names like Kota Finance, Utkarsh Finance, and Swatantra Finance, stand accused of resorting to extreme measures, including physical threats and confiscation of personal property, to enforce repayment.

The plight of the villagers came to light following a string of complaints lodged at the Chhatarpur police station.

Among the victims, Manju Devi, Rajpatiya Devi, and Kunti Devi from Tenudih village, have recounted their harrowing experiences with these financial institutions.

Highlighting the gravity of the situation, Rajpatiya Devi’s FIR detailed an incident involving Pankaj Kumar from Sukanya Finance Company, who allegedly resorted to forcefully taking gold jewelry due to missed loan installments.

Similarly, a disturbing account emerged from Kunti Devi, who claimed Anish Raj of Fusion Micro Finance seized essential household items like an LPG cylinder, stove, and mixer under the Ujjwala scheme.

The predatory practices extended to threats of physical harm and suggestions of self-harm by employees of Kota Finance, as reported by the victims.

In a particularly shocking allegation, the manager of RBL Finance Company was accused of threatening the demolition of a borrower’s house.

These revelations underscore the need for heightened scrutiny and regulatory intervention to protect vulnerable borrowers from such exploitative practices by microfinance institutions.

Stricter Oversight Needed

The incidents highlight the absence of adequate regulatory frameworks to safeguard borrowers from predatory loan recovery methods.

The alarming trend of property confiscation and threats warrants immediate action from regulatory authorities.

Victims Speak Out

The testimonies of Manju Devi, Rajpatiya Devi, and Kunti Devi bring to light the aggressive and unlawful tactics employed by microfinance companies.

Call for Regulatory Intervention

These cases underscore the urgent necessity for regulatory bodies to step in and ensure the fair treatment of borrowers, especially in rural and vulnerable communities.