Man dies by suicide after "harassment" by microfinance companies in Karnataka

Mangalore Today News Network

Haveri, February 4, 2025: A 42-year-old man died by suicide in this district following ’harassment’ by microfinance companies, police said on Monday.

The man who died, identified as Malatesh, ran a barber shop, they said.

The incident occurred on Sunday night within the Rane Bennur police station limits.

He died by hanging, due to "harassment" by various microfinance companies from whom he had borrowed money over time, they added.

The victim’s family alleges that he had collectively borrowed around Rs 6.45 lakh from four microfinance companies.

Despite repaying the amounts in instalments, he was "harassed" by these companies, prompting him to take such an extreme step.

A case has been registered under section 108 (abetment of suicide) of the BNS against the four microfinance companies, police said, adding that the case is under investigation.

Meanwhile, Karnataka Deputy Chief Minister D K Shivakumar on Monday said that the government had planned an ordinance to stop the ’torture’ of the poor by microfinance companies in the name of ’loan recovery’.

"Our government will not allow microfinance companies to take the law into their own hands and torture the poor using hooligans. We will give more power to the police to handle this," he said.

Asked about the ongoing ’torture’ despite government warnings, he said, "Many FIRs have been filed against microfinance companies in Belagavi, Bidar, Mysuru, and Ramanagara. The chief minister and the cooperative ministers have already issued stern warnings in this regard." "An ordinance is ready and will be sent to the Governor in a couple of days. We have also started helplines in every district headquarters. The chief minister will also hold meetings on this with senior police officials," he added.