people dry. First, they over-lend and then they arm-twist people into repaying the loans at really high rates of interest. They even put my moneylending caste to shame!”
The CM is not particularly impressed by the minister’s efforts to seek brownie points for his caste. But when caste and coalitions are what help governments in India stay in power, it is important to ignore irrelevant details.
“Looks like the government and the Maoists are fighting the same evil for a change, eh Marutigaru?”
The CM looks at MR with a half-smile. MR nods, fully aware that the CM is trying to test his allegiance. Who is he to disappoint him?
“Indeed sir! The Maoists have a history of locking horns with informal financiers. That was made amply clear to us all those years ago when they took us captive at Gurtedu. But of course, the onus is now ours.”
The CM acknowledges this with a nod before gesturing to Rashid to continue.
“Sir, in almost all the cases, there has been an instance of over and multiple lending, There has been indiscriminate lending and gross violations of all ground-level procedures, sir.”
The CM turns to MR.
“I want a report from across the state. Get your teams in all the districts to file a report on all such instances within their purview within the next 48 hours.”
He turns back to Rashid.
“I want TERP to come up with a comprehensive report on the causes of the suicides.”
He finally turns to his cabinet colleague to issue another set of directives.
“Consult with the Ministry of Law on the status of the existing laws that apply to MFIs. Get hold of the Memorandum and Articles for some of these MFIs and have our legal experts study them. Talk to the Federal Banking Regulator and see what they advise on treating the MFIs as common moneylenders under these circumstances.”
He returns his attention to MR.
“About this threat...have they targeted the MFIs directly? Or are they reserving all their ire for the government?”
“Sir, they have issued a direct threat to them. Here, I have a copy of a newspaper report on it.”
SHUT SHOP IN VILLAGES, MAOISTS TELL MFIs
ENN Sep 23, 2010, 03.33am IST
WARANGAL : Taking a tough stand against micro finance institutions (MFIs), the Maoists have asked MFI managements to close their operations in villages immediately in the wake of series of suicides by women.
Maoist party KKW (Karim-nagar-Khammam-Warangal) Secretary Sudhakar warned MFIs of dire consequences if they do not shut shop. In a statement here on Friday, he said agents and representatives of MFIs are humiliating rural women and insulting their family members because of which several villagers have committed suicide.
He also warned SAMMAAN Microfinance Chief Prasad Kamineni, owners of DevEx, Asshray and Sowmya, of serious consequences as “they are responsible for the spate of suicides in the state,” he said in the statement.
Sudhakar said the government should grant five acres of agricultural land, an ex gratia of Rs 5 lakhs, and employment for one member of the families of the deceased.
Making an appeal to the youth and women associations to fight against the fast-mushrooming MFI branches in the state, he said the government must take necessary steps to cancel the licences of these MFIs. Sudhakar warned MFIs about their anti-people policies. “If you do not change your attitude, we will teach you a fitting lesson,” he stated.
Meanwhile, four Maoists have been arrested in Moran-chapalle village in Bhupalapalle mandal. They were nabbed from the forest area. Fourteen country-made rifles have been recovered from them.
The CM seems perturbed as he scans the report.
“Have you alerted the police and the home ministry on this? We need to provide the MFIs security whatever be their crimes.”
The CM closes his eyes and pinches the bridge of his nose.
“And keep the media at bay until we come up with a plan of action.”
CHAPTER 7
P ADERU
The CM is not particularly impressed by the minister’s efforts to seek brownie points for his caste. But when caste and coalitions are what help governments in India stay in power, it is important to ignore irrelevant details.
“Looks like the government and the Maoists are fighting the same evil for a change, eh Marutigaru?”
The CM looks at MR with a half-smile. MR nods, fully aware that the CM is trying to test his allegiance. Who is he to disappoint him?
“Indeed sir! The Maoists have a history of locking horns with informal financiers. That was made amply clear to us all those years ago when they took us captive at Gurtedu. But of course, the onus is now ours.”
The CM acknowledges this with a nod before gesturing to Rashid to continue.
“Sir, in almost all the cases, there has been an instance of over and multiple lending, There has been indiscriminate lending and gross violations of all ground-level procedures, sir.”
The CM turns to MR.
“I want a report from across the state. Get your teams in all the districts to file a report on all such instances within their purview within the next 48 hours.”
He turns back to Rashid.
“I want TERP to come up with a comprehensive report on the causes of the suicides.”
He finally turns to his cabinet colleague to issue another set of directives.
“Consult with the Ministry of Law on the status of the existing laws that apply to MFIs. Get hold of the Memorandum and Articles for some of these MFIs and have our legal experts study them. Talk to the Federal Banking Regulator and see what they advise on treating the MFIs as common moneylenders under these circumstances.”
He returns his attention to MR.
“About this threat...have they targeted the MFIs directly? Or are they reserving all their ire for the government?”
“Sir, they have issued a direct threat to them. Here, I have a copy of a newspaper report on it.”
SHUT SHOP IN VILLAGES, MAOISTS TELL MFIs
ENN Sep 23, 2010, 03.33am IST
WARANGAL : Taking a tough stand against micro finance institutions (MFIs), the Maoists have asked MFI managements to close their operations in villages immediately in the wake of series of suicides by women.
Maoist party KKW (Karim-nagar-Khammam-Warangal) Secretary Sudhakar warned MFIs of dire consequences if they do not shut shop. In a statement here on Friday, he said agents and representatives of MFIs are humiliating rural women and insulting their family members because of which several villagers have committed suicide.
He also warned SAMMAAN Microfinance Chief Prasad Kamineni, owners of DevEx, Asshray and Sowmya, of serious consequences as “they are responsible for the spate of suicides in the state,” he said in the statement.
Sudhakar said the government should grant five acres of agricultural land, an ex gratia of Rs 5 lakhs, and employment for one member of the families of the deceased.
Making an appeal to the youth and women associations to fight against the fast-mushrooming MFI branches in the state, he said the government must take necessary steps to cancel the licences of these MFIs. Sudhakar warned MFIs about their anti-people policies. “If you do not change your attitude, we will teach you a fitting lesson,” he stated.
Meanwhile, four Maoists have been arrested in Moran-chapalle village in Bhupalapalle mandal. They were nabbed from the forest area. Fourteen country-made rifles have been recovered from them.
The CM seems perturbed as he scans the report.
“Have you alerted the police and the home ministry on this? We need to provide the MFIs security whatever be their crimes.”
The CM closes his eyes and pinches the bridge of his nose.
“And keep the media at bay until we come up with a plan of action.”
CHAPTER 7
P ADERU
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