Microfinance Firm Booked for Harassment in Udupi
Udupi: The Udupi Town Police have registered a case against a Surathkal-based microfinance company for allegedly harassing a man and his daughter over delayed loan repayments, following the enforcement of the state’s new ordinance on microloans.
According to a complaint reported by Deccan Herald, Shamshad (53), a resident of Bailuru Korangrapadi village, and his daughter Shahnaz had each taken a loan of ₹30,000 from the company. While they had been consistently repaying through digital transactions, unforeseen financial difficulties caused delays in recent installments.
Despite their request for an extension, the company allegedly sent agents to their residence multiple times, coercing them into immediate repayment with excessive interest. Matters escalated on February 25 when a company representative unlawfully entered their home, verbally abused them, and issued severe threats.
Following the complaint, the Udupi Town Police booked the company under sections 8 and 12 of The Karnataka Micro Loan and Small Loan (Prevention of Coercive Actions) Ordinance, 2025, along with sections 329(4), 351(2), and 352 of the BNS.
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