The Flora Max loan scheme scam has sparked conflict between the ruling BJP and opposition Congress after victimized women gheraoed BJP Ministers Lalkhanlal Devangan and Ram Vichar Netam in Korba. In response, Industry Minister Devangan threatened the women with police action if they not stop protesting aggressively. Agriculture Minister Netam also warned of serious consequences for those he claimed were politicizing the issue and blocking the roads.
Flora Max allegedly defrauded hundreds of women in Korba for around Rs 500 crore, promising high returns on investments in their scheme. Initially, the company provided some returns but then ceased payments. After complaints were filed, the mastermind fled the area. Following a complaint from ex-Home Minister Nankiram Kanwar, the police initiated an investigation and arrested the mastermind; however, recovery of the lost funds has not yet begun.
The victimized women protested against the ministers during their visit to a social function in Korba, demanding either a full refund or loan waivers, as the company had taken loans in their names. The district administration intervened to de-escalate tensions but the issue remains unresolved.
Opposition Congress criticized the ministers by sharing a threatening video of Minister Devangan on social media, claiming the BJP is intentionally insulting women. Former Chief Minister Bhupesh Baghel stated that the BJP’s identity is now linked to corruption and fraud.
In the controversial video from January 12, Minister Devangan can be spotted threatening the women that although the government supports their cause, if they continued to protest arrogantly they would have to face repression from police including forceful dispersal of protestors. This enraged the women. Minister Netam added that road blockages would not solve the problem and urged them not to take matters into their own hands, assuring that investigation and action against the guilty would follow.
Baghel also highlighted that the names of BJP leaders are often associated with fraudulent companies. He asserted that Industry Minister Devangan had previously inaugurated Flora Max, which is implicated in the massive scam.
The ministers’ actions have prompted Congress to label the BJP’s Mahatari Vandan (respect women) scheme as a facade designed to deceive the public. Congress criticized BJP for pretending to honor women while simultaneously disrespecting them.
In a bid to mitigate damage, Minister Devangan claimed the scam occurred during Congress’s tenure and stated that action had been taken, with 12 arrests made and more investigations ongoing.
Notably, Flora Max Service Private Limited, run by Akhilesh Singh and associates, misled ordinary people, including women in groups, into investing Rs 30,000 each with false promises of significant returns. Initially, members received minimal returns, while the company took loans in their names. After the director fled and the company shut down, victims began receiving bank calls for loan repayments.
Subsequently, the police sealed the company after discovering substantial irregularities.
