CPM Wants Ex-Gratia For MFI Victims

Senior Communist Party of India (Marxist) leader and MP P Madhu, on Friday, demanded that the State government pay a compensation of Rs. 5 lakh to families of members of self help groups who ended their lives after being unable to repay loans to MFIs.

Talking to media persons, the MP demanded that criminal cases be booked against MFIs which resorted to rowdyism in recovering their loans from hapless victims and effectively being responsible for the suicides.

Madhu urged the government to impose a ban on all MFIs in the State immediately, and sought action against them for violating rules and regulations.

He criticized the State government for its failure to release funds to the tune of Rs. 10,000-12,000 crore annually to Self Help Groups.

"If the government had released adequate funds, the crisis would not have arisen at all," he accused, and added that the government had released only Rs. 1,100 crore to the SHGs.

He pointed out that the SHGs had approached the MFIs to meet their financial needs, even after knowing that the MFIs charged high interests on these loans.

Inability to repay loans with exorbitant interest rates charged by MFIs, and the institutions' abusive nature in recovering the loans has forced the hapless victims to commit suicides, the MP stated.

He said that the government should be held responsible for the suicides, and demanded that it release compensation to the next to kin of the victims.

Courtesy: INN