The Hindu : Andhra Pradesh News : Collector, SP warn micro finance agents

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Thursday, Oct 14, 2010
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Andhra Pradesh

Andhra Pradesh

Collector, SP warn micro finance agents

Correspondent

People asked to call toll free numbers to lodge complaints against MFIs

Toll free numbers are 155321 and 08542-250100
People requested not to approach MFIs for loans

MAHABUBNAGAR: Stringent action would be initiated against persons encouraging micro finance in the district, Collector M. Purushotham Reddy and Superintendent of Police G. Sudheer Babu, said on Wednesday.

Addressing a joint press conference here, they requested people of the district not to go for micro finance. The Collector asked people to be alert about the micro finance and not approach any micro finance institutions at any cost.

He said a district-level review meeting will be held with SP and members of Zilla Mahila Samakya and Project Director DRDA.

The Collector requested people to call the toll free number 155321 or 08542-250100 to lodge complaint against MFIs. He said so far no specific cases were reported in the district.

However, action would be taken against moneylenders of MFIs.

He also requested women self-help groups not go for micro finance since the district administration was providing Rs.523 crore under ‘pavala vaddi' during the financial year.

‘Gumpu Mestry' system

Referring to the ‘Gumpu Mestry' (labour contractor) system, the Collector said that labour contractors cannot use force to make labourers migrate.

He said according to Inter-State Migration Act they should register their names and other particulars compulsory with the officials concerned. He also said that meetings with labour contractors would be held at the mandal level with Tahsildars to stop forcible migration.

The SP said serious action would be initiated against micro financiers if they collected high interest or harassed people. He said all police stations in district were directed about micro financiers and so far no case was received.

Regarding migration of labour, he said a vigil was being kept on labour contractors in the district. DRDA Project Director Chandrakanth Reddy and other officials were present.

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Andhra Pradesh