Kuppam, Andhra Pradesh: In a horrific incident in Chief Minister N. Chandrababu Naidu’s constituency of Kuppam, Chittoor district, 25-year-old Shireesha was tied to a neem tree and beaten by TDP worker Munikannappa for failing to repay a Rs 80,000 loan taken three years ago. Shireesha, a daily wage worker abandoned by her husband, struggled to repay the debt while supporting her children. The lender allegedly abused and threatened to kill her before dragging her to the tree for a public assault. The incident, captured on video, sparked outrage, leading to Munikannappa’s arrest and charges under the Bharatiya Nyaya Sanhita, 2023. Naidu, responding swiftly, directed the Chittoor police to take stringent action and vowed to prevent such atrocities, with the district administration offering Shireesha medical and financial aid. The attack highlights the predatory “girigiri” lending practice, where moneylenders charge up to Rs 10 as weekly interest per Rs 100 lent, exploiting vulnerable borrowers. Similar issues have prompted legislative action across southern states, but implementation remains weak:
• Tamil Nadu: The 2025 Money Lending Entities Act bans coercive recovery by non-RBI lenders, with penalties up to 5 years imprisonment and Rs 5 lakh fines. The enactment the legislation owed to the special interest of Chief Minister M. K. Stalin
• Karnataka: The 2025 Micro Loan Act imposes up to 10 years imprisonment for coercive tactics but disrupts microfinance, with repayment rates dropping below 90% due to borrower confusion.
• Andhra Pradesh: A 2010 ordinance regulated MFIs but caused a credit freeze. No new 2025 law exists, and lax oversight allows private lenders to thrive, as seen in Shireesha’s case.
• Telangana: The 2011 MFI Act curbs coercive practices by MFIs but not private lenders, with weak enforcement and recent loan waiver schemes failing to address recovery tactics.
Despite these laws, rural outreach, legal awareness, and enforcement remain inadequate across the region, leaving borrowers vulnerable to exploitation. The Kuppam incident has fueled calls for Andhra Pradesh to introduce stricter regulations, potentially mirroring Tamil Nadu and Karnataka’s 2025 laws, to protect the working class from predatory lenders. Naidu’s promise of action could pave the way for reforms, but effective delivery is crucial to prevent further tragedies.