By Suresh Unnithan
Thiruvananthapuram: Cases relating to fiscal fraudsters masquerading as MSME loan facilitators, defrauding small-time business aspirants, are on the rise. Of late, the Ministry of Micro, Small and Medium Enterprises (MSME) has officially issued a warning about these quakes.
The ministry in its statement on Friday said “It has come to the notice of the Ministry of Micro, Small and Medium Enterprises, that some unscrupulous elements are contacting people and extorting money on the pretext of facilitating them with loans directly from the Ministry of MSME under various schemes of the Ministry.
Cautioning the public against such tricksters the ministry has further said “it is hereby informed that the Ministry of MSME, Government of India, does not directly deal with individual beneficiaries for any of its credit schemes. All the credit schemes of the Ministry are implemented through Banks/Financial Institutions only. Individuals who want to apply for the MSME loans/credit facilitates should contact their nearest Scheduled Commercial Banks.”
Reiterating that neither the ministry nor the government in power has entrusted or assigned any individual or agencies on such tasks the Ministry said, “All the details of the credit schemes of the Ministry of MSME are available on our websites viz. https://msme.gov.in, http://dcmsme.gov.in and https://champions.gov.in. Ministry of MSME cautions entrepreneurs and members of the public not to fall prey to such offers made by such fraudsters either directly or through website/phone calls etc. The Ministry of MSME further advises entrepreneurs and members of the public that dealing with such fraudulent individuals/institutions could cause financial loss to them and the Ministry shall not be in any way accountable for the same.”
Mr Pradeeep K Pillai, Chairman, the MSME Promotion Council INDIA (MSMEPCI), Kerala also cautions the public from such swindlers. “The MSME department does not directly deal with individual beneficiaries for any of its credit schemes. Instead, all credit schemes are implemented through Banks/Financial Institutions.”
Elaborating on the functions of MSMEPCI Mr Pillai said “we stand as a beacon for the MSME sector, driving initiatives that propel small businesses towards prosperity. The MSME Promotion Council of India is dedicated to fostering a conducive environment to MSMEs, empowering them to thrive and contribute significantly to the nation’s economic landscape.”
According to Mr Pillai” such frauds often involve cheats contacting small entrepreneurs and offering those loans at low interest rates. Once the victim agrees to the loan, the fraudsters will demand upfront fees or payments. Once they collect the money, they vanish into thin air.” He also warns to be “wary of any unsolicited loan offers, especially if they come from email, phone, or social media.”
Mr Pillai further advises the public to report to the police and to the MSME in the event of any such frauds coming to notice. “You can also file a complaint with the National Consumer Helpline.”