Hassan Farmers Allegedly Lose Rs 92 Lakh In PMEGP Subsidy Loan Fraud

A suspected loan fraud has come to light in the Halebeedu area of Hassan district, where dozens of farmers allegedly lost lakhs of rupees after being promised large loans under the central governments Prime Ministers Employment Generation Programme.

The accused, identified as 44 year old Shankarappa from Mulbagal taluk in Kolar district, has been arrested by Halebeedu police. He allegedly introduced himself as a bank official and approached people in the area with claims that he could help them secure loans carrying substantial government subsidies.

According to complaints filed with the police, more than 72 farmers have alleged that they collectively lost around Rs 92 lakh. The affected farmers are now seeking government intervention and have demanded that the accused assets be recovered and used to help compensate those who lost money.

The alleged fraud reportedly began around one and a half years ago when Shankarappa started visiting the Halebeedu region. He is said to have established contact with a local leader named Somanna, who subsequently helped introduce him to farmers in the surrounding areas.

The accused allegedly told farmers that loans ranging from Rs 50 lakh to Rs 1 crore could be arranged through the PMEGP scheme. He reportedly claimed that borrowers would receive a substantial subsidy, with some farmers allegedly being told that the subsidy could range between 35 percent and 50 percent.

The promise of a large loan combined with a government subsidy reportedly convinced several farmers to hand over money as commission or processing expenses. Some of them are said to have raised the money by selling cattle, while others reportedly borrowed from different sources.

The situation changed after the accused allegedly collected the money and disappeared. The promised loans did not arrive, leaving the farmers facing financial losses and mounting debt.

The case has also taken a tragic turn, according to the complaints and accounts surrounding the incident. Somanna, the local person who had reportedly helped connect the accused with farmers, and another farmer identified as Eshwarappa are said to have died after the financial crisis. The circumstances and exact reasons surrounding their deaths would require confirmation from the authorities.

As complaints increased, the scale of the alleged fraud became clearer. A total of 72 people have reportedly approached the Halebeedu police station, claiming losses of approximately Rs 92 lakh.

Police also reportedly found that Shankarappa had Aadhaar cards linked to three different addresses. A separate case is said to have been registered against him in Chikkaballapur as well.

The arrest has provided some relief to the affected farmers, but they are now asking authorities to take further action. They have reportedly urged the government to seize the accused assets and take steps to recover their money.

The incident has once again highlighted the risks faced by farmers when dealing with people who claim to arrange government backed loans. Subsidy linked schemes can involve specific eligibility conditions, approved institutions and formal application procedures. Farmers should therefore verify such claims directly through official government departments, banks or authorised agencies before paying any commission or service charge.

The PMEGP scheme is intended to support eligible entrepreneurs in establishing micro enterprises, with financial assistance provided according to the applicable rules. The actual subsidy and loan terms depend on the applicants eligibility, project and other conditions.

For the farmers involved in the Hassan case, the immediate concern remains recovering the money they allegedly lost. Police are expected to continue investigating the complaints, the financial transactions and the accused alleged activities to establish the full extent of the case.

The arrest is an important development, but the investigation will determine how the money was collected, whether other people were involved and what assets may be linked to the alleged fraud. The affected farmers are hoping that further action will help them recover their losses and bring the matter to a conclusion.