Karnataka CM Siddaramaiah Announces ₹5 Lakh Compensation For Families Of Microfinance Suicide Victims

Karnataka CM Siddaramaiah announced ₹5 lakh compensation for families of those who died by suicide due to microfinance harassment, stressing the aim is to reduce suicides to zero. Opposition raised concerns over police role and monitoring.

Bengaluru: Karnataka Chief Minister Siddaramaiah announced a compensation of Rs 5 lakh to the families of people who died by suicide due to the harassment of micro financiers. CM Siddaramaiah said, “A compensation of Rs 5 lakh each will be given to the families of those who died or committed suicide due to the mistreatment of microfinanciers.”

Aim To Reduce Suicide Rate To Zero

The Chief Minister made this announcement in the Legislative Council on Thursday.

"Farmers are committing suicide due to debt. In the same manner as the compensation given to their families, Rs 5 lakh will also be given to the families of people who committed suicide due to the scourge of micro finance. Our aim is to reduce the suicide rate to zero," he said.

The CM replied to a question from BJP member C N Manjegowda that a decision was taken in this regard after discussing this with the Finance Department and the Chief Secretary.

People in the rural areas of the state are committing suicide due to fear of harassment by micro financiers.

Ordinance Helped Reduce Suicides Since 2024

After examining this issue and enacting the Karnataka Microfinance and Small Loans Act by bringing an ordinance in 2024, the number of suicide cases has decreased significantly. Before the law was implemented, eight people died in 2023 and 6 in 2024. Twenty-four people had committed suicide before February 2025.

The CM said that the number of people committing suicide has decreased after the implementation of the act.

Opposition Questions Effectiveness Of The Act

JDS member C N Manjegowda, who questioned in the Legislative Council, said that even after the Micro Finance Act came into force, there have been 27 cases.

"17 people have committed suicide. The answer that a case has been registered is not satisfactory. They say that microfinance harassment is being monitored through police beats, but in many places, there are examples where the police themselves have been involved in evicting people from their homes," he said.