Ordinance Looms as Microfinance Harassment Claims Life in Karnataka

A 42-year-old man in Karnataka, identified as Malatesh, died by suicide due to alleged harassment by microfinance companies. He had borrowed Rs 6.45 lakh and faced pressure despite repayments. The state government plans an ordinance to combat such harassment and empower police action.

A tragic incident has unfolded in Karnataka, where a man named Malatesh, aged 42, took his own life, reportedly due to relentless harassment by microfinance companies. According to the police, Malatesh, who ran a barber shop, was found dead within the Rane Bennur police station limits.

The victim's family claims he had borrowed a total of Rs 6.45 lakh from four microfinance firms. Despite making repayments, he faced incessant pressure, which allegedly drove him to his extreme decision to end his life. Consequently, a case under section 108 of the BNS for abetment of suicide has been registered against the companies involved, with investigations ongoing.

Karnataka's Deputy Chief Minister D K Shivakumar has announced that the government will introduce an ordinance aimed at stopping microfinance 'torture' in loan recovery cases. The ordinance, pending Governor approval, seeks to prevent similar tragedies by reinforcing police powers and establishing district helplines, amid growing reports of such harassment across the state.