Maharashtra CM Devendra Fadnavis Warns Microfinance Firms Against Harassing Drought-Hit Farmers, Orders Criminal Action

Mumbai: The Maharashtra government has warned microfinance companies, financial institutions, banks and moneylenders against harassing drought-hit farmers for loan repayment, directing police to register criminal cases against those using coercive recovery methods or intimidation.

Fadnavis Orders Strict Action Against Microfinance Recovery Agents

Chief Minister Devendra Fadnavis issued instructions for strict action against officials and recovery agents of microfinance companies found harassing farmers. The directions follow an incident in Nanded that raised concerns over pressure exerted on cultivators struggling amid the ongoing drought.

Fadnavis said the death of a farmer in Nanded had raised serious concerns and that all Superintendents of Police had been instructed to ensure that complaints of harassment were registered immediately and criminal cases filed wherever warranted.

Maharashtra Government To Approach RBI Over Coercive Loan Recovery

The Chief Minister also said the government would communicate with the Reserve Bank of India (RBI) to ensure that microfinance companies did not resort to coercive recovery practices or intimidate borrowers.

"If microfinance companies threaten farmers or use force, action will be taken against their senior officials, and criminal cases will be registered," Fadnavis said.

Eknath Shinde Warns Banks And Moneylenders Against Pressuring Farmers

Deputy Chief Minister Eknath Shinde also issued a stern warning to lenders, saying the government would not spare anyone who subjected farmers to mental pressure or forced them to repay loans during the drought crisis.

Referring to the Nanded incident, Shinde said strict criminal action would be initiated against those who pressurised farmers, including by taking them to lenders' offices or employing other coercive methods to recover outstanding dues.

He said the government had held discussions with the RBI, banks and financial institutions to address the issue and ensure that farmers were not subjected to harassment during a period of severe agricultural distress.

Shinde appealed to farmers not to succumb to pressure from recovery agents and urged them to contact the authorities immediately if lenders threatened or harassed them.

"Do not be afraid if anyone pressures you for loan recovery. Contact the authorities immediately. The government stands with you," he said.

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