Financing deaths the micro way

By Surya Desaraju
Vijayawada: In a further twist to the microfinancing saga, the Krishna district administration has now sent a detailed report to the state government linking at least 10 deaths in the district to alleged harassment by micro finance firms due to nonrepayment of loans taken by them. Among the 10 people who allegedly committed suicide in Krishna district were two couples. These deaths are believed to have taken place over the last 5-6 months. “This is sad, microfinancing is a great idea. But the report of these deaths is bound to adversely affect the fledgling activity of microfinancing,” said an analyst. The names sent by the district officials to the state government are: Maddela Panduranga Rao and wife Kumari of Machilipatnam; Panchakarla Rama Rao and wife Sakuntala of Kanumolu village under Bapulapadu mandal; Mangisetti Sukanya of Mylavaram; Malakondaiah of Mustakanpet; Diyyala Roja of Allapuram village under Gannavaram mandal; Nuvvula Ananda Rao of Bandarugudem and Matangi Latha of Rangannagudem under Bapulapadu mandal and Setti Nageswara Rao of Payakapuram in Vijayawada. Official sources said until now, there was no other evidence except circumstantial to exactly determine that the deaths were suicides and specifically because of harassment by micro finance firms. “Only in the case of a couple from Machilipatnam, a case of suicide was registered by the police in November last. The reason cited for the couple’s death, however, was not linked to the micro financing issue but as caused due to financial misery,” the sources pointed out. But now that the circumstantial evidence established the reason for the deaths, officials have linked the cases to the micro financing menace. “We are now probing deep into these cases to exactly pinpoint the cause of the deaths. We are certainly relying on circumstantial evidence to build the cases strongly,” a top district official said. Both the revenue and the police authorities are speaking not only to the victims’ families but also to other members of the thrift groups and villagers to unearth the facts. Meanwhile, one J Subba Rao (55) of Nutalapadu village in Prakasam ended his life by hanging in his house last Sunday after he was allegedly harassed by a micro financing firm for loan repayment. Subba Rao ran a small tea canteen in his village and borrowed Rs 10,000 from the firm to meet his wife’s health care costs. He repaid the loan instalments promptly for 38 weeks but last Wednesday he could not. Sources said the microfin firm’s collection agent hounded Subba Rao seeking payment of the instalment. Unable to do so, Subba Rao hanged himself while his family was away, sources said.