The Andhra Pradesh Police on Friday said it has arrested three people working with SKS Microfinance and Spandana on a complaint of harassment by a borrower, and might book the companies' respective promoters Vikram Akula and Padmaja Reddy under a new Ordinance to check coercive methods of loan recovery. The borrower, Ammulu, filed the complaint with the Yemmiganur police station in Kurnool district, about 270 km from Hyderabad, last night. A...

Financial sector expert Y.H. Malegam will head a Reserve Bank of India (RBI) panel to look into the functioning of microfinance institutions or MFIs and their regulations. The MFIs are in the business of giving tiny loans. Kumar Mangalam Birla, Shashi Rajagopalan and U.R. Rao – all on the boards of the Indian central bank – and RBI deputy governor K.C. Chakrabarty are the members of the panel. The committee, which will...

Seventy-year-old Dau Singh is dancing to the tune of a parody music being belted out in the background by a group of people sitting on the pavement. The song urges people to write letters to their brethren and come there to join the fight. "Come on mazdoors, get into the act to get what you deserve," urges the song. The venue is the Statue Circle in Jaipur, where hundreds of...

Public uproar over 20 suicides in two months has forced the Andhra Pradesh government to act to regulate micro-finance institutions. On October 14, the state government brought an ordinance making it compulsory for MFIs to register themselves, declare the effective rate of interest they charge, ensure that no security is sought for loans and no coercion is used for recovery. Non-compliance will be punished with a three-year prison term and a...

Forest Minister Benoy Viswom on Monday expressed apprehension that the National Green Tribunal Act, enacted by the Centre, would lead to dilution of the Forest (Conservation) Act. In a letter to Union Minister of State for Environment and Forests Jairam Ramesh, Mr. Viswom called upon the Union Minister to convene a conference of State Ministers of forests and environment to discuss issues related to the Act. Concerns Mr. Viswom said while he appreciated...