More than 12,000 women from Kakati and nearby villages in Belagavi taluk have alleged harassment by microfinance institutions after falling victim to a ₹100-crore loan scam. Despite the state government forming a Special Investigation Team (SIT) in December 2024 and arresting the accused, the victims claim the probe has failed to attach their properties, which could aid recovery.
Two FIRs were filed, one at Kakati police station and another at Malmaruti. against the prime accused, Manjunath Naik, and four women associates. According to complaints, they targeted self-help groups, arranged loans through microfinance firms, and retained half the sanctioned amount while promising to repay instalments. Though they paid for the first few months, defaults followed, leaving women burdened with debts.
Nearly 40 microfinance institutions are now seeking recovery, with victims alleging that constant pressure from agents has pushed some women to suicide.
Earlier this week, hundreds of affected women met Deputy Commissioner Mohammad Roshan, seeking intervention. Acknowledging that their greed made them vulnerable, they pleaded for protection from recovery harassment. DC Roshan assured them he would ask the SIT to speed up the probe and attach the accused’s assets. He also said he would write to the lending institutions to suspend recovery efforts for three months.
