Special Correspondent
Ukhrul , July 8:
IN an unprecedented outcry against systemic exploitation, over a hundred aggrieved farmers from Ukhrul and Kamjong districts staged a massive protest rally on Monday, demanding justice for a large-scale Kisan Credit Card (KCC) loan scam that has left more than 1,200 farmers defrauded and in debt—without their knowledge or consent.
Gathering first at Ukhrul Town Hall, the victims—many of them from remote villages—marched resolutely to the Ukhrul Mini-Secretariat, where they submitted an official complaint to the Superintendent of Police Ukhrul through the Additional SP to take swift legal action against the alleged mastermind of the scam.
At the heart of the scandal is Somi Awungshi, son of late Pangai Awungshi from Tangkhul Hundung Khullen village in Kamjong district. Victims allege that over a decade ago, Somi collected photocopies of Electoral Identity Cards from poor farmers under the false pretext of facilitating access to government schemes and benefits. What followed, however, was a calculated act of identity theft and financial fraud.
Addressing the media, Jairus Gachui of Lunghar village revealed that the farmers were completely unaware that bank accounts had been opened in their names with IDBI and Canara Bank, through which KCC loans were sanctioned and withdrawn without their consent. “We only came to know about the loans after receiving legal notices from the banks, citing loan defaults,” he said.
Another victim, Sword Mahung from Lungphu village, shared a similarly shocking experience. “We were told these ID copies were needed to get government help. Now we find out we owe lakhs to banks we never even visited,” he said. According to him, many loans that initially amounted to Rs 50,000 have now grown to over Rs 1.5 lakh due to interest accumulation and penalties.
The protesters claim that the loans were siphoned off through a local body known as KAKSUS Society, allegedly in connivance with the accused. This, they say, is not just a breach of trust but a deliberate exploitation of the most vulnerable section of society—poor, illiterate farmers—who trusted the system and individuals posing as facilitators.
The scale and nature of the scam have alarmed the community. Many fear this could have wider repercussions, both socially and economically, as hundreds of victims are now blacklisted by banks, ineligible for future loans or subsidies.
In their memorandum, the farmers urged the district administration to file an FIR immediately against Somi Awungshi. It also demanded to launch a thorough investigation into the operations of KAKSUS Society; seek clarification and records from the banks involved and provide legal aid to the victims and facilitate loan waivers for those defrauded.
“This is not just financial fraud; it is a crime against humanity. These people live hand-to-mouth, and now they are being chased by banks for loans they never took,” said a local activist supporting the protest.
As the matter unfolds, pressure is mounting on the district administration and police to treat this not as an isolated incident but as a systemic failure involving gross negligence or collusion. The protestors vowed to continue their agitation until justice is served.
The KCC loan scam, perhaps the biggest of its kind in Ukhrul, could well become a defining case of rural banking fraud in Manipur, exposing cracks in verification systems and underlining the urgent need for tighter scrutiny in loan disbursement processes.
