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India state gov't pushes microfinance prosecutions

February 27, 2012 RSS Feed Print

In one instance, Share staff paid the family of the deceased to drop the case after they complained to the police, he said.

Share's Kumar denied giving payments to victims.

Today, police case files brim with forgotten, grim details, and microfinance lending has ground to a halt in Andhra Pradesh, after a state law clamped down on abuses by introducing onerous restrictions on loan disbursement and collection.

Spandana's Agrawal said that with the halt in microfinance lending, the poor of Andhra Pradesh have been driven back into the arms of moneylenders.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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