Microfinance

Microfinance Leaders in India face threats from Maoists

Leaders of the banned Communist Party of India (Maoist) have issued an ultimatum to microfinance companies and their promoters in Andhra Pradesh to stop operations or face the consequences.

The CPI(Maoist) secretary for Karimnagar, Khammam and Warangal districts – Mr Sudhakar has warned MFIs of dire consequences if they do not stop recollections in a statement issued to the media on Friday. The statement also warns Vikram Akula (founder SKS Microfinance), V Hanumantha Rao ( Congress MP of Rajya Sabha  and Vikram Akula’s Uncle) , promoters of L&T Microfinance, Swayamkrushi and Chaitanya  microfinance of serious consequences if they did not immediately suspend operations in the state.

The Maoist leader further alleges that the Microfinance Ordinance is a sham and microfinance companies are using their political clout to operate indiscriminately in total violations of the ordinance. The statement also blames the followers of Sonia Gandhi and Rahul Gandhi as being responsible for the spate of microfinance related suicides in the state.

The Maoist leader demanded that the government should grant five acres of agricultural land and a compensation of Rs 5 Lakh to the families of those microfinance clients who have committed suicide.

maoist affected states

Map showing the spread of Naxalite-Maoist Insurgency in India. Image Credit:topnews.in

In early November this year two microfinance field staff members were abducted by armed Maoist’s and were later released with a warning.

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