The Kangleipak Communist Party (PWG) MC Unification has alleged worsening economic hardship in Manipur, citing rising inflation, loan write-offs for large borrowers and mounting pressure on small entrepreneurs and farmers.
In a statement issued by its PRO Chinglcheinganba, the outfit claimed that the violence that erupted on May 3, 2023, which it attributed to the Chin-Kuki-Zo “Zalengam Project,” has severely affected indigenous communities and disrupted economic stability in the state. It stated that despite Manipur’s rich cultural and intellectual heritage, many educated youths, small business owners and farmers are facing financial uncertainty.
The group alleged that corporate-driven economic policies have widened inequality and claimed that small traders and farmers across India have faced harassment from banks and financial institutions. Citing parliamentary data, it stated that commercial banks in India wrote off loans amounting to approximately Rs 12.3 lakh crore between the financial years 2014–15 and 2023–24, and questioned whether comparable relief had been extended to small borrowers.
According to the statement, Manipur has witnessed one of the highest inflation rates in the country over the past three years, resulting in a sharp rise in prices of essential commodities and increased strain on economically vulnerable sections. The outfit further alleged that financial distress has led to instances of suicide in the state, claiming that 77 such deaths occurred in the past year due to economic pressures.
Referring to resolutions reportedly adopted by its Central Committee on February 15, 2026, the group announced that it would oppose what it described as harassment during loan recovery processes. It warned of strong action if coercive recovery measures or practices linked to suicide tendencies among borrowers continue.
The statement also alleged that corporate companies, banks, financial institutions and moneylenders have denied fair settlement mechanisms to small borrowers while extending concessions to large defaulters. It called for reasonable loan settlement provisions to enable borrowers to clear dues without undue pressure.
Specifically naming Tata Finance, a subsidiary of the Tata Group, the outfit alleged that harassment by the company had led to the deaths of four individuals in Manipur. It declared that from February 15, 2026, Tata Finance should cease operations in the state and warned against loan recovery activities by the company.
There was no immediate response from Tata Finance or the concerned banking institutions regarding the allegations at the time of filing this report.