On 18 October 2026, several families in Shirahatti town, Gadag district, lodged complaints that a firm called Lakshmi Enterprises collected fees for government‑backed loans that never materialised. The aggrieved parties claim the company promised subsidised credit ranging from Rs 5 lakh to Rs 25 lakh to help them start small ventures.
According to the statements, the firm approached aspiring entrepreneurs with plans for tailoring units, roti‑making stalls and cement‑brick factories. Applicants were asked to submit Aadhaar and PAN details, with the assurance that Lakshmi Enterprises would handle the entire paperwork. In return, each person paid a processing sum between Rs 10,000 and Rs 30,000, and some were told additional payments would be required after loan approval.
After the initial fees, a few claim to have received cheques that later turned out to be ineffective. When the office abruptly shut its doors, the money already handed over was neither refunded nor converted into the advertised loans. The shutdown left many households, whose savings came from daily‑wage labour, in a precarious financial position.
Victims have now appealed to the Gadag Superintendent of Police, urging a thorough investigation to identify the individuals behind Lakshmi Enterprises and to initiate legal action if fraud is confirmed. They stress the need for prompt recovery of their hard‑earned savings.
The episode highlights the vulnerability of rural borrowers who rely on government schemes for economic upliftment. Authorities advise anyone seeking such assistance to verify the authenticity of loan programmes directly with the concerned department or an authorised bank before parting with any money.
Image: siasat.com
📰 Source: Siasat Gulf