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One of the women in the self-help group collected the loan EMI amounts from the other members to pay the loan but instead pocketed the money and refused to provide the records. The loan amount was transferred directly to each member’s account. This person was responsible for depositing the collected EMI amounts into their accounts. Now, the group members are asking the group leader to pay, as the lady can’t pay. How can the group leader safeguard them legally, as they were not involved in this?
The group leader should inform the members of their legal rights. They can file a police complaint for fraud or breach of trust. The group leader is not liable unless there’s proof of negligence. Legal action can include a complaint under Criminal Breach of Trust or Fraud. For further legal assistance contact us on our helpline number.