Two Villagers From Nanjangud End Lives

Leader of Opposition in the assembly R Ashoka on Monday alleged that the state government's failure to disburse loans under various schemes forced people to borrow from microfinance companies.

- EXPRESS NEWS SERVICE @Mysuru

"A total of Rs 1,700 crore should be given to corporations, but a mere Rs 643 crore has been released. This means there is a deficit of Rs 1,055 crore for all corporations. This money could have been given to people as loans, while at the same time, microfinance institutions have stepped in," he said while addressing the media at Vidhana Soudha.

He alleged that the government failed to disburse loans to different boards & corporations, including those meant for the welfare of SC/ST and OBC communities. This resulted in people turning to microfinance institutions and getting caught in debt trap.

"The state has become the suicide capital under the Congress government. People are taking loans from microfinance companies because of the sins of this government. If the government itself had provided loans, people would not have committed suicide," he stated.

"Rowdies in the illegal microfinance business were quiet for some time. But now they have jobs because of the Congress government," he complained.