Karnataka: Micro Finance harassment claims two more lives; FIR filed after NewsFirst report

The death toll from financial harassment in the state has risen to 14, as two more victims succumbed to pressure from microfinance companies. The state government has initiated measures to curb aggressive loan recovery tactics, but for many, the damage has already been done.

In Belagavi’s Bailahongala town, 38-year-old Rafiq Tigadi took his own life after being subjected to verbal abuse by finance staff over a ₹6 lakh loan. Officers from Bailahongala police station visited the scene to investigate.

Also read: Harassment linked to microfinance loans leads to deaths in Karnataka

Meanwhile, in Chief Minister Siddaramaiah’s home district of Mysuru, another tragic incident occurred. Subrahmanya (37), a resident of Bettadapura Basaveshwara Colony in Periyapatna, died after enduring relentless harassment. Finance staff had publicly written about his unpaid loan on the walls of his house, pushing him to despair.

The alarming trend has prompted action. Following a NewsFirst report on the death of Krishnamurthy in Mysuru due to similar financial harassment, police have filed an FIR and arrested four finance staff members. The accused—Akash (22), Siddharaju (28), Siddaraju (23), and Lokesh (25)—were charged with aggressive loan recovery tactics linked to BSS Finance, Kota Finance, and Ujjivan.

As pressure mounts, authorities are under scrutiny to enforce stricter regulations against predatory microfinance practices.