Belagavi: More than 12,000 women from Kakati and the surrounding villages of Belagavi taluk have been reeling under harassment from microfinance institutions for over a year after falling prey to a Rs 100-crore loan scam.In Dec 2024, the state govt set up a Special Investigation Team (SIT) to probe the fraud, given its seriousness. While the SIT arrested the accused and conducted interrogations, it has so far failed to attach their properties, which victims say could help them recover their losses.Two cases were registered, one at Kakati police station and another at Malmaruti police station, about the scam. According to the complaints, the accused, Manjunath Naik, along with four women accomplices, approached self-help groups (SHGs) in villages and facilitated loans through microfinance institutions. Their modus operandi was to retain 50% of the loan amount, assuring the women that they would pay all instalments on their behalf.The group initially paid instalments for six to seven months but later defaulted, leaving the women saddled with debts. Since then, about 40 microfinance institutions involved in the lending have been aggressively pursuing recovery. Complainants alleged that relentless harassment by recovery agents drove several women to suicide.A couple of days ago, hundreds of affected women met DC Mohammad Roshan, pleading for relief. They admitted their greed made them vulnerable to fraud, but they sought protection from the ongoing harassment.Responding to them, DC Roshan said, “It is a financial fraud issue, and an investigation is already underway. I will instruct the SIT to expedite the probe and attach the assets of the accused.” He further assured that he would write to the microfinance institutions asking them to halt recovery operations for the next three months.
