AP cops to target ‘rogue’ microfinance institutions

Andhra Pradesh police says it will regulate microfinance institutions (MFIs).

Andhra Pradesh police today said they were studying the guidelines given in the ordinance promulgated by the State Government to regulate microfinance institutions (MFIs) in the wake of suicide by borrowers.

“We have received a copy of the ordinance and the same has been forwarded to the legal cell of CID to study and follow the guidelines while initiating action against erring MFIs,” Director General of Police K Arvinda Rao told reporters here.

A video conference with Superintendents of Police (SPs) of all districts will be organised shortly to deliberate on the guidelines,he said.

The ordinance was issued on October 15.

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“There are stringent provisions under IPC to initiate action against the erring MFIs. We will definitely take action against ‘rogue’ MFIs,” the DGP said.

Police officials who fail to discharge their duties will also invite action,Rao said.

MFIs had been accused of adopting coercive methods for recovery of loans from the rural poor in the state.

These have resulted in a series of suicides in different parts of Andhra Pradesh,official sources have said.