Alur
Strong anger erupted after a private finance company allegedly seized a house in Kunduru hobli, Valagarahalli village despite claims that the loan had already been repaid. The incident sparked protests led by the Karnataka Rajya Raitha Sangha.
According to reports, the finance company staff had pasted a seizure notice on the house and locked it, claiming outstanding dues. However, the affected family — identified as the couple Prasanna and Umavathi — stated that they had taken a loan of ₹ 2 lakh in 2019 by mortgaging their house and had already repaid the agreed amount. They alleged that officials were demanding an additional ₹3.30 lakh despite full repayment.
The family said the harassment intensified when the finance staff locked their house while the husband was away for medical treatment in Mangaluru. They further alleged that their daughter was left outside the home during the incident.
In response, farmers’ organisation leader Kanagal Murthy and members of the Karnataka Rajya Raitha Sangha intervened, breaking open the locked house and allowing the family to re-enter. The activists accused the private finance company of exploiting a poor rural family and engaging in coercive recovery practices.
Leaders of the farmers’ group demanded strict action from district authorities against such private financial institutions and microfinance operators, alleging that similar cases of harassment have been increasing in rural areas. They warned of continued protests if justice was not delivered to the affected family.
The incident has once again raised concerns over aggressive loan recovery methods used by some private finance firms, especially against economically vulnerable households in rural Karnataka.
