Two more suicides after harassment by MFIs

Two more borrowers of microfinance institutions in Andhra Pradesh on Friday committed suicide after they were allegedly subjected to harassment and humiliation by the recovery agents of the lending companies. With this, the total number of suicides by the victims of MFIs this year has crossed 40.
 
In the latest incident, a farmer named Srinivas in Guntur district killed himself by consuming pesticide in Srirangapuram village. His family members said that he could not bear the harassment by MFI agents, as he was unable to repay his loan and he ended his life.
 
In the other incident, Parmila, a house wife in Balanagar area of Hyderabad, committed suicide at her home. She too had taken a loan from a MFI but could not pay the instalments. Her family alleged that she was facing harassment from the recovery agents.
 
The incidents of suicides have been going on for a week after the state government promulgated an ordinance to regulate the activities of MFIs in the state and curb their corrupt practices.
 
On Friday, the AP high court rejected a petition by the MFIs, seeking a stay order against the ordinance. The court, in its interim order,

said that the MFIs will have to register themselves with the state government within a week. The court told the government that the MFIs can continue to make their efforts to recover their loans if they work within the law. If they resort to harassment and strong arm tactics, cases should be booked against the companies, said the court.
 
Microfinance institutions had approached the high court for a stay order against the ordinance which imposed restrictions on their activities in view of the complaints of harassment.
 
Meanwhile, Telugu Desam Party president N Chandrababu Naidu on Friday rushed to Medak district to console the families of the three persons who had committed suicide over the issue. He handed over a cheque of Rs 50,000 to each family.
 
Naidu alleged that the microfinance system had turned into a mafia to exploit the poor. He said that the apathy of the state government was responsible for the spate of suicide due to the harassment by microfinance companies. The TDP chief demanded that the loans of all such families should be written off and the state government should pay a compensation of Rs 5 lakh to the kin of every person who had committed suicide.