A significant microfinance scam amounting to nearly Rs 19.35 crore has come to light in Belagavi district, affecting over 7,700 individuals—mostly women. The fraudulent scheme, which allegedly originated in Belagavi taluk, has reportedly spread across the district and to other regions of Karnataka, according to police officials.
Four individuals—Ashwini Holappa Daddi, Holappa Fakirappa Daddi, Shewanti Holappa Daddi, and Priyanka Holappa Daddi—residents of Yamanapur in Belagavi taluk, have been arrested from areas including Yamnapur, Halbhavi, Kangrali KH, and Kangrali BK. They were later granted bail.
The scam came to the fore after Sheikha Kannappa Hanchinmani, a resident of Sonatti village, filed a complaint at Malmaruti Police Station.
As per the complaint, the accused promised microfinance loans with a unique structure: they would retain 60% of the sanctioned loan amount, while the remaining 40% would be given to the borrower as a subsidy. Victims were further assured that the full loan would eventually be repaid by the accused on their behalf.
However, once the loans were sanctioned and funds released, the accused vanished—leaving the borrowers fully liable for the repayment, including the portion they never received.
This scheme has driven many women into financial crisis, with mounting interest worsening their situation. Police investigations are ongoing to uncover the full scope of the fraud and identify any additional individuals involved.
