People forced to turn to microfinance companies as state govt fails to provide loans & cut grants: K’taka LoP

Bengaluru, Jan 27 (IANS) Karnataka Leader of the Opposition (LoP) R. Ashoka said on Monday that the people are forced to turn to microfinance companies as the state government has failed to provide loans and cut grants.

“The Congress government’s actions have forced people to rely on microfinance loans, leading to suicides. People are forced to turn to microfinance companies as the Karnataka government is failing to provide loans and has cut grants to various departments,” he said.

Speaking at a press conference in Vidhana Soudha in Bengaluru on Monday, Ashoka said, “If the government had provided loans, people wouldn’t have been pushed to the extent of taking their own lives.”

Ashoka said that overall, the previous BJP government allocated Rs 15,383 crore to agriculture, horticulture, rural development, and cooperative sectors, while Congress allocated Rs 14,768 crore, creating a deficit of Rs 614 crore.

Ashoka alleged that the Congress government’s failure has enabled microfinance companies to exploit the poor.

“In microfinance schemes, a group of 10 people is formed, and each person is given Rs 50,000 as a loan. Members act as guarantors for each other, and high-interest payments are demanded monthly. For a Rs 50,000 loan, Rs 67,000 has to be repaid. If payments are delayed for two months, goons visit homes and create trouble,” Ashoka said.

He added that in several villages, people have fled their homes due to pressure from microfinance companies. “The Congress government’s failure to offer loans through corporations has forced people to turn to microfinance institutions,” he reiterated.

He further charged the government, citing a comparison of funding allocations: For the Ganga Kalyana Scheme under B.R. Ambedkar Development Corporation, the BJP allocated Rs 60 crore in 2022-23, while Congress allocated Rs 40 crore in 2024-25.

For the corporation’s self-employment scheme, the BJP allocated Rs 100 crore, whereas Congress allocated Rs 45 crore. For the Tanda Development Corporation’s self-employment scheme, the BJP allocated Rs 110 crore, while the Congress allocated Rs 60 crore, Ashoka said.

Similarly, the Karnataka Adi Jambhava Development Corporation received Rs 100 crore under the BJP but only Rs 50 crore under Congress.

Ashoka also alleged corruption in the Valmiki Development Corporation, where funds have been frozen. Of the Rs 1,700 crore required by various corporations, only Rs 643 crore has been allocated, leaving a shortfall of Rs 1,055 crore. This shortfall, he claimed, has forced people to seek loans from microfinance institutions.

Ashoka also criticised the Congress government for reducing allocations across key sectors, claiming that the BJP allocated Rs 7,288 crore to the agriculture department in 2022-23, while Congress provided only Rs 5,035 crore, leaving a shortfall of Rs 2,253 crore.

He said that the BJP allocated Rs 1,374 crore to horticulture, compared to Rs 1,207 crore by the Congress.

Ashoka also criticised Chief Minister Siddaramaiah, saying, “Like closing the stable door after the horse has bolted, Siddaramaiah is now planning to introduce new laws. Notices are being issued, and people are being evicted from their homes without any warning. Even the police are complicit, offering no protection to the victims.”

He alleged that Siddaramaiah’s promise to waive loans has caused losses to DCC banks, as borrowers are now waiting for waivers instead of repaying loans.

“Prime Minister Narendra Modi had warned that Congress would take away people’s livelihoods, and it is now becoming true. If Congress’s ‘Griha Laxmi’ scheme truly benefits women, why are they still turning to microfinance?” Ashoka questioned.

Ashoka further questioned why the Congress government is asking the central government for funds for Bengaluru and irrigation projects. “If Prime Minister Narendra Modi is expected to do everything, why is Congress even in power here?” he asked.

He stated he supports the implementation of a Uniform Civil Code, saying it would promote equality. “In other countries, all citizens are treated equally. Similarly, in India, the same laws that apply to Hindus should apply to people of all religions,” he said.

–IANS

mka/dan