Communist Party of India (CPI) state secretary K Narayana demanded on Friday that the state government file criminal cases against Microfinance Institutions which resorted to coercion and used 'inhuman' methods to recover loans extended to the poor and downtrodden families.
Talking to media persons, Narayana demanded that the government file criminal cases against those microfinance firms, which fleeced customers with exorbitant interest rates and lead them to commit suicides.
Narayana alleged that the firms were first encouraging people to take loans and later forcing them to pay loans with heavy interests. Unable to pay the loans, the people were committing suicides, the veteran communist leader stated.
Narayana also appealed to the government to impose ban on those financial institutions and cancel their licenses.
If the government did not impose ban on such financial institutions, the CPI would intensify its agitation across the state, the CPI leader warned.
Courtesy: INN
filed in:Microfinance Institutions, CPI, K Narayana