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  • tampacoolie
    07-08 05:02 PM
    Many people don't really understand the investigative powers uscis has or the extent they will go through. if person fakes paystubs to do an h-1b transfer; well uscis issues rfe's asking for a listing of all h-1b employees and payments made to each employee for last two years. I have seen them inter-relate this information for people who have faked these types of things.

    Recently; I saw uscis california service center request state unemployment compensation reports for all employees for wages paid for the last two years. ..

    These two types of documentation were requested by US Consulate, Chennai for issuing H4 visa for my wife. I had to get these documents and send to india for stamping. They issued H4 immediately after reviewing the documentation. I have not faked any documentation. They have requested these documentation based on the assumption that my employer is letter pad company.





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  • unitednations
    07-08 04:44 PM
    Particularly worried about what you just mentioned about USCIS using other means to deny application - this seems to go against the principle of 245(K) which was to allow folks to get GC irrespective of a violation in the past. If the intent is to not let folks use 245(K), why even publish such a law? MOre importantly, for folks who have been staying and working in a country for many years (read > 5 yrs), it is possible that they might have some glitches and 245(K) was there to cover that (I am not saying every one has gone through this but a lot of people in 2000/01/02 went through this).

    What are the grounds for I-485 denial if my I-140 is approved?

    The followings are the grounds for an I-485 denial.
    a. Some crimes committed by the applicant.
    b. The applicant is out of status or illegally worked for over 180 days.
    c. If the I-140 is employer-sponsored, the applicant changes job before I-485 has been pending for 180 days.
    d. The applicant drastically changes occupation or job field.
    e. The applicant travels abroad without Advance Parole (H/L visa or status is excepted).
    f. The applicant�s failure to RFE or fingerprint.


    There are a lot of protections in immigration law for us beneficiaries.

    When we quote laws; we generally are looking for specific items that may benefit us.

    However; uscis uses or misuses other parts of immigration law to override these friendly type aspects.

    Every piece of paper a person signs and sends to uscis is done under "penalty of perjury". Even though there is protection such as 245k; uscis can use the "perjury" and document fraud to override all of these friendly type policies. If they think a person is dirty or trying to get away with something then they will dig even harder until they find something. I remember as an auditor; a company wanted to fire their CFO but couldn't find a performance reason. Easiest way was to go to the persons expense report because everyone fudges it and this is essentially how he got fired. USCIS knows that if they dig hard into someones file they will find something.


    Many people don't really understand the investigative powers uscis has or the extent they will go through. if person fakes paystubs to do an h-1b transfer; well uscis issues rfe's asking for a listing of all h-1b employees and payments made to each employee for last two years. I have seen them inter-relate this information for people who have faked these types of things.

    Recently; I saw uscis california service center request state unemployment compensation reports for all employees for wages paid for the last two years. the service center actually picked four people who were paid substantially less and pulled their h-1b files and pointed this out in their denial that they coudn't trust the companies assertions on the LCA and they had to deny the petition for the current beneficiary.

    All these talks of lawsuits, etc; will just make them dig in their heels more and find more things and make it more and more difficult.





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  • redcard
    03-23 05:20 PM
    Wow...that is a pretty harsh list. Is it possible for you to politely point out that you need to prove legal status from your last entry into the country on H1B and not go all the way back to 2000 giving contracts and all ?

    I think you are right.. its from the last lawful admission into the country to check the status. I am not sure if they can dig into your past beyond the last entry to US unless you have name check or other issue.

    Here is the document which clearly states for lawful status into US.

    http://www.uscis.gov/files/nativedocuments/245(k)_14Jul08.pdf


    You should be good incase you meet the requirement,





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  • Marphad
    12-17 02:53 PM
    Now you may go and dig out my previous postings too!

    Ah! all these red dots are showered on me by you kinda folks for questioning this type of nonsense!

    Bring it on more (red dots) LOL

    Because when you speak something it is useful and when others say something is nonsense. Cool.



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  • alterego
    07-13 02:18 PM
    First off, we are here to get our GC faster so the effort is commendable.

    However, I was also wondering about the old interpretation of the law. After the EB2-ROW numbers fall through to EB3-ROW and presumably make it current, the excess numbers go to EB2 China and India or does it go to EB3 China and India? Glad that someone else also caught this.

    In the old interpretation after EB3ROW, it would be EB2C and I and then finally EB3I.





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  • sanju
    12-18 12:46 PM
    Guys..

    If you believe in Science, you wont tend to believe in any religion or for that matter any God..

    God was created by man..

    Imagine this :

    Take for ex : God is human.. How can a human being be supreme or whatever and manage other humans.. For ex if 1000 people commit crime how can a God being a instance of human being watch them.. Even if he watch them how can he punish them.. all not humanly possible.. so God cannot be human..

    So let us take like what Islam says.. God is not human nor he is physically presence.. In that case how an Supreme being again watch all of our deeds when even a human kind of thing is not possible.. So God cannot be supremely supreme to watch us..

    Earth all happened by itself and it evolved by itself.. It will destroy itself and it will retransform itself.. this is the absolute truth.. believe it or not..

    Everyone has some kind of inner consciensus.. you be afraid to that and answerable to that.. (You can call it as God if you want..)

    Other than that start believing in Science and be answerable to yourself.. Nothing else matters...

    You are saying all this out of sheer ignorance and you yourself dont know what you are speaking about your own creator. If you know little science you will go away from religion, if you know more science, you will come towards religion. You are a victim of the former.

    All through out the history, Religion has been in competition with science. Why? Because Religions want to be the answer to every question -why do we have day and night, earth is flat,...? Then came science, providing valid reasoning to these questions. So there was competition. In earlier years, as we all know, people who said that earth was round were executed by the religious people who felt thretened. That close mindedness did not end there, it still flows in everyone still praticing some form of oraganzied religion.

    Human behavior is such that we try to make up reasons to explain everything around us. And for the things we don't understand, we go to our religion to find answers for the unknown. Religions always comes up with some answer, which is proved wrong 100% of the times as science progresses. It would be ok to believe religious view that earth is flat and "GOD" is spinning the earth on his/her fingers. But you see, we no longer live in medival period, and know better than that. Although, we have gained knowledge and we continue to find out more things, but the religious leader still wants mankind behave as if we are living in medivial period. Based on what the so called religious leaders tell us, people still follow these books litterally and blindly, because mankind continue to look towards religions whenever we are not able to find answers to our questions. And this bahvior pattern has gotten embrossed into our genes during 100s of generations.

    And scientist do not have answers for everything, yet. And for the things they don't have answers, because of their genes and their lack of ability to answer every question, they look upon religion for answers to questions that they cannot explain. But great scientist have never relied on "a religion" to explain GOD, although most have acknowledged their believe in the existance of GOD. But that in itself is not enough for us to take the word of the book each religion preaches litterally, and call people from other faiths as non-believers, evil, kafirs or every other synonym out there. That's the same kind of ingorance and disease as demonstrated and abetted by people who killed scientist in the middle period for saying that earth is round. Its the same kind of behavior that tells others to riot because some newspaper published a cartoon in some part of the world and that cartoon offended my GOD. I mean, how shallow is that God or show narrow minded is that religion which gets offeneded by a cartoon. And that doesn't applies to one religion, it applies to evey organized religion out there. Just think ....

    Following an organzied religion doesn't mean that you acknowledge the existance of GOD or you "believe" in GOD. It just means that you believe in the religion in which you were born, and inspite of everything you learned, you fall short of finding answers to your questions, and hence the narrow world view.



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  • sc3
    08-05 08:29 PM
    see below


    Then check. Context is everything sometimes.


    I checked, everything I said before, I stand by it.



    There was no point, I said I did not believe it. I was showing the original poster that using a large black brush to tar a whole group of people is offensive and inappropriate. At least read my whole post before responding. I see I hit a nerve though. So it's ok for you t claim that EB2 means nothing and is ill gotten but not ok for me to talk about EB3?


    So, I used your black brush to paint over your argument to the argument you claim to resolve. You should expect that, when you try to sling mud on others, you should be ready to get some mud on you too. You cant go complaining when you get the taste of your own medicine.


    Bull crap. Don't make me open my mouth anout labor my friens. best we don't open this up.


    Again you seem to be implying that we are getting our labor for free (or that we dont deserve it)... Can you say why? Agreed there are some (a lot?) who use loopholes etc, but then that is not restricted to EB3s alone.



    I'm not in IT. the more I hear IT folks go at each other, the less I think of the field frankly. And yes, i do not know about you but I met several people who came in the tech boom, whose jobs a monkey could do. Sorry, just the truth.


    I am not in IT either. I am into software research, but IT folks do the work that requires skills. In your home environment, you can slap-on machines and routers etc. and it works because you dont need performance, and because some IT and some developer sat together to bring out a product that was easy to use. In production environment, you need to support 1000s of "consumers". Performance reliability etc. is the key, and it takes a lot skills to manage. I am fairly skilled when it comes to computers, but still I will not match most of the IT folks that work in my company.

    If monkeys could really do the job, and the managers hired humans, probably, the company was being managed by monkeys.





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  • hiralal
    06-07 09:50 PM
    I definitely agree with the post above :). ..here is another article ..not the best bit vague but still good ..it came in just now on cnbc
    note the line marked in red ..it still depends on economy ...but predictions are that US economy may stagnate plus tight immi ..and you can see what will happen in future
    http://www.cnbc.com/id/31151346

    --------------------
    Home prices in the United States have been falling for nearly three years, and the decline may well continue for some time.

    AP

    Even the federal government has projected price decreases through 2010. As a baseline, the stress tests recently performed on big banks included a total fall in housing prices of 41 percent from 2006 through 2010. Their “more adverse” forecast projected a drop of 48 percent — suggesting that important housing ratios, like price to rent, and price to construction cost — would fall to their lowest levels in 20 years.

    Such long, steady housing price declines seem to defy both common sense and the traditional laws of economics, which assume that people act rationally and that markets are efficient. Why would a sensible person watch the value of his home fall for years, only to sell for a big loss? Why not sell early in the cycle? If people acted as the efficient-market theory says they should, prices would come down right away, not gradually over years, and these cycles would be much shorter.

    But something is definitely different about real estate. Long declines do happen with some regularity. And despite the uptick last week in pending home sales and recent improvement in consumer confidence, we still appear to be in a continuing price decline.

    There are many historical examples. After the bursting of the Japanese housing bubble in 1991, land prices in Japan’s major cities fell every single year for 15 consecutive years.

    Why does this happen? One could easily believe that people are a little slower to sell their homes than, say, their stocks. But years slower?

    Several factors can explain the snail-like behavior of the real estate market. An important one is that sales of existing homes are mainly by people who are planning to buy other homes. So even if sellers think that home prices are in decline, most have no reason to hurry because they are not really leaving the market.

    Furthermore, few homeowners consider exiting the housing market for purely speculative reasons. First, many owners don’t have a speculator’s sense of urgency. And they don’t like shifting from being owners to renters, a process entailing lifestyle changes that can take years to effect.

    Among couples sharing a house, for example, any decision to sell and switch to a rental requires the assent of both partners. Even growing children, who may resent being shifted to another school district and placed in a rental apartment, are likely to have some veto power.

    In fact, most decisions to exit the market in favor of renting are not market-timing moves. Instead, they reflect the growing pressures of economic necessity. This may involve foreclosure or just difficulty paying bills, or gradual changes in opinion about how to live in an economic downturn.

    This dynamic helps to explain why, at a time of high unemployment, declines in home prices may be long-lasting and predictable.

    Imagine a young couple now renting an apartment. A few years ago, they were toying with the idea of buying a house, but seeing unemployment all around them and the turmoil in the housing market, they have changed their thinking: they have decided to remain renters. They may not revisit that decision for some years. It is settled in their minds for now.

    On the other hand, an elderly couple who during the boom were holding out against selling their home and moving to a continuing-care retirement community have decided that it’s finally the time to do so. It may take them a year or two to sort through a lifetime of belongings and prepare for the move, but they may never revisit their decision again.

    As a result, we will have a seller and no buyer, and there will be that much less demand relative to supply — and one more reason that prices may continue to fall, or stagnate, in 2010 or 2011.

    All of these people could be made to change their plans if a sharp improvement in the economy got their attention. The young couple could change their minds and decide to buy next year, and the elderly couple could decide to further postpone their selling. That would leave us with a buyer and no seller, providing an upward kick to the market price.

    For this reason, not all economists agree that home price declines are really predictable. Ray Fair, my colleague at Yale, for one, warns that any trend up or down may suddenly be reversed if there is an economic “regime change” — a shift big enough to make people change their thinking.

    But market changes that big don’t occur every day. And when they do, there is a coordination problem: people won’t all change their views about homeownership at once. Some will focus on recent price declines, which may seem to belie any improvement in the economy, reinforcing negative attitudes about the housing market.

    Even if there is a quick end to the recession, the housing market’s poor performance may linger. After the last home price boom, which ended about the time of the 1990-91 recession, home prices did not start moving upward, even incrementally, until 1997.



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  • gcgreen
    08-06 12:59 PM
    Same as you, I saw your post and couldn't help responding :-)

    For what its worth, I too have a PhD, and one would generally agree my academic credentials are impeccable, etc. etc. (Honest, I am not tooting my own horn)

    But I think Rolling Flood is wrong. Way off base. The reason is simple. Work experience COUNTS. You are a fresh Ph.D. graduate, but believe me even you will feel the difference 5 years down the line (3 years in your case :-). If a person gains experience, the USCIS believes that allows a person to be eligible for a job that falls under EB2 classification.

    Now as a very separate and distinct matter, the law says if a person already has a prior approved I140, then that priority date rules. That is the law.

    Now the logical conclusion of the two separate concepts above is that if a person is the beneficiary for an EB2 job, which by dint of experience, he/she simply is per USCIS and most companies (which is why people get promoted to senior/management positions :-), then that person is allowed by law to port their priority date.

    What RollingFlood and the other so-called (RollingFlood: I am not calling you one, but others have called you something similar ;-) smarter-than-thous are making a mistake on is to conflate two separate issues and making a ego-oriented mess in the process. Make no mistake, RollingFlood is very clear in delineating the skill of a person from the job requirements, which many of the EB3 IVians appear to have missed. But nonetheless, his logic is a bit mixed up on the law. It is incontrovertible (assuming that we have correct citations) that the language of the law is saying that an earlier priority date rules. The only issue is whether 5 years or more of experience required for a job makes that job worthy of an EB2 classification. RollingFlood has not explained why a job that requires 5 years or more experience in addition to a B.S. does not make it eligible for EB2. Without that he is likely going to waste a lot of money on lawyers.


    I agree with "singhsa".
    I was reading through this thread and couldn't help replying.

    Before i voice my opinion, i would like to mention that I have a Ph.D in Aerospace Engineering (2002-2006 from a very reputed univ. in the US). My husband's employer (non-IT) had applied for his GC in EB3 - in 2005 which makes sense since the job required a B.S (Even though he was MS and was working for this company since 2002). We have our 485s filed and are using our APs/EADs. Now, i haven't applied for GC through my employer yet, but if i apply, it would most likely be EB1 or 2, and would love to port my PD of 2005. The reason i haven't done that is because i personally do not think that getting a GC couple of years earlier is going to make my life any different than it currently is.

    Having said that, I completely understand what "rolling flood" is trying to say. And I also agree to what his point of view is. When a person who initially agreed to apply with EB3, changes his mind/company/ or whatever and wants to apply in EB2, he should theoretically start over. Why is it reasonable that he/she cuts in line ahead of a person who was already there. There is a reason why these categories are formed.

    Shady means or non-shady means, EB2 means that u have superior qualifications and you are more desirable in the US.
    EB3 means there are a lot like u, so u gotta wait more. Period.





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  • Macaca
    02-27 08:14 AM
    A Republican Purge on K? (http://www.washingtonpost.com/wp-dyn/content/article/2007/02/26/AR2007022601142_2.html)

    John Feehery has left the Motion Picture Association of America to start his own lobbying firm, the Feehery Group. Feehery, 43, joined the movie lobby with great fanfare in 2005 to help silence sotto voce attacks by congressional Republicans, then in the majority, on the group's chief executive, former congressman Dan Glickman (D-Kan.), and on left-leaning Hollywood. Feehery had been the spokesman for then-House Speaker J. Dennis Hastert (R-Ill.) and a veteran GOP leadership aide.

    But last month, the MPAA named Seth Oster, a Democrat, as executive vice president for communications, in effect taking part of Feehery's portfolio. My colleague at washingtonpost.com, Mary Ann Akers, reports that lobbyists worry that the move might presage a citywide purge of Republicans. But Feehery professes no bitterness. "It was a good time for me to start my own business," he said. "It gives me a greater range to do things I want to do." The MPAA will be one of his first clients, he added.



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  • svn
    03-31 07:51 PM
    I am not convinced with the whole systematic preadjudication logic at all. .

    Didn't say anything about "systematic" at all - I think we all know better than to use "systematic" and "USCIS" in the same sentence!:D However, they definitely seem to be making some progress on adjudications even if none the country caps limit green cards issual. Aamazing how you can change behaviour when you set a goal and start to measure people on it - looking at the bits and pieces of info being released by USCIS, you can see something is changing and I would suspect a lot has to do with the new leadership in government, that has a mandate for greater transparency (unlike their predecessors). Given the lack of visibility to Case Officers of cases with old PD's (they track by RDs and not PDs), I cannot but believe this will be good for getting some structure into the system.





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  • gcisadawg
    12-22 02:37 AM
    If that's what your experience has been, its good news.
    Overall, my experience has been completely opposite but if most Pakistanis are anti-terrorism as you say, half the battle is already won. I am also beginning to a get a sense that this has embarrased lot of muslims....and its set them thinking.

    However, how do you propose we bring the terrorists to book? Attack Pakistan? Bomb the terrorist camps out? Wait for another attack to happen, wait for your own family in Mumbai to be wiped out? And exchange hateful words on IV? Release the terrorists in exchange for political hostages or fedd them dal, chapatis in Indian prisons?

    Justice doesn't come magically or does it?

    Well, one thing I can think of is how we treat the dead terrorists. In case of Parliament, Ashkardam and Mumbai attack, security forces killed the terrorists while they were killing innocents. As usual, Pakistan disowned them.
    Publicise very very heavily and spread the word that these dead bodies would be given non-islamic burial. Hit where it hurts them...After giving non-islamic rites, spread the word that next terrorist that gets killed would get more drastic treatment.

    BUT ensure that this treatment would be only for the foreign terrorists who are killed by security forces while doing their act and that are disowned by their country. It can be easily misused also. This should ONLY be done if nobody claims ownership of the body.

    The story we hear about Kasab is that he was a looser and a petty criminal who was brainwashed. If he and his ilks are willing to get brainwashed religiously then they can not discount the effect of propaganda about non-islamic rites for their dead body and possibly it might deter them from taking that ultimate step.

    Take a survey among the Muslims in Bombay to see if they support giving non-islamic rites for the 'orphaned' dead terrorists. I'm sure most of the sensible Muslims are outraged and they would agree to it especially after seeing what they saw on the TV. Before the killer's gun, there is no religion but only the intention to kill.



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  • kshitijnt
    09-27 11:15 PM
    With economy in doldrums, mccain has almost lost election. CO is leaning to democrats so is VA and NH. And no state that Kerry won in 2004 is leaning to republicans. PA is almost safe with Biden in ticket. So Obama has reasonably stable lead in polls. All he needs to make sure is he does not make any gaffes in the debates.





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  • yrspassby
    08-07 04:46 PM
    An old man visits his doctor and after thorough examination the doctor tells him: "I have good news and bad news, what would you like to hear first?"

    Patient: "Well, give me the bad news first."

    Doctor: "You have cancer, I estimate that you have about two years left."

    Patient: "Oh no! That's awefull! In two years my life will be over! What kind of good news could you probably tell me, after this??"

    Doctor: "You also have Alzheimer's. In about three months you are going to forget everything I told you."



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  • newbie2020
    08-06 04:36 PM
    People will jump to the ship which goes faster...Thats the bottom line, If tomorrow for some reason EB3 ship moves faster than EB2 ship then you would also jump your EB2 Ship and go to EB3 ship as most other people including me. Focus your energy on some positive action items which benefit the community.





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  • pitha
    09-26 06:24 PM
    Barack Obama the socialist with his protectionist\restrictionist measures will not create jobs but will destroy the capitalist america. In addition to "creating" jobs by stopping "JOBS BEING SHIPPED OVERSEAS", he will also "create" jobs by kicking you and me out of USA. Lookout for draconian H1b restrictions, points based system, removal of AC21 and amnesty for illegals by obama-kennedy-durbin CIR. Not sure MCcain would do anything for us but one thing for sure he wont be anti to eb folks. Just like Bush who might not have done anything for us but atleast during the july 2007 visa bulletin fiasco his administration (chertof, rice ) atleast reversed the July bulletin after the flower campaign. Durbin-obama would thrown the flowers on our face and kick us out.

    Just Kidding - reading your post i was feeling like I'm reading a comment from Fox News. However i do respect your opinion and thanks for expressing it.

    My Point is more long term - in the shorter term no major change can happen to economy even if Barack wins but eventually Economy would be stronger under Barack's leadership. He also stressed that he would stop "JOBS BEING SHIPPED OVERSEAS" which means companies like TATA or INFY or some Chinese company taking my Job ( or any American's Job ) away from US to INDIA or CHINA. If you are planning a future in US - you would not want your US job taken away by your brother at INDIA or CHINA and Barack will make sure that doesn't happen.

    The Bottonline is he will create tons of Jobs at US , so unemployment will be very low , average peoples will be happy and however loud ANTI-IMMIGRANTS scream and shout no AMERICAN will pay attention. Our EB reforms will Pass much easily and we will be able to able to lead a much happier and content life with GREEN CARD.

    Once again my Point is definitely Long Term - in the shorter duration Barack has to first fix the Mortgage Mess and do something with Iran by taking help from EUROPE.



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  • SunnySurya
    08-05 10:38 AM
    I object to your insinuation and gross generalization. It is not your job to ask this question. It upto the law of the land to figure that out and root out dishonesty and deceit.
    I don't know about rolling flood Just FYI I have an MBA from the US ( a top ) university and have been working with various fortune 100 companies. Currently on EAD.
    I asked this before and asking again. How many of that EB2 got jobs with out faking their resumes and skill set. Atleast did you?





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  • ashkam
    04-15 02:59 PM
    Are people seriously arguing that a child will not be happier in a bigger home, everything else remaining constant? Seriously, is someone actually arguing this?

    And money can't buy happiness? Really? Are you saying everything else remaining constant if I gave you money it would make you sad? Seriously? Who is this person who would be sadder if I gave him money? I would like to meet him.

    You people need to stop reminiscing about your childhood days and how happy your childhood was even though you had no money. I have a feeling that your child doesn't really care. Sure, give your child lots of love, but for Christ's sake, if you can afford it, don't make him / her spend his / her childhood in a small cramped apartment just because you had to.





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  • sledge_hammer
    03-23 01:24 PM
    I'm not sure if its just me being a conspiracy theorist for a change, but I see that these types of phone calls and RFEs, etc are coming only to people that DON'T have a lawyer. Anyone else feels the same?





    alisa
    01-10 11:22 AM
    Israel is not invading Gaza for no reason. Why do coward Palestinians need to fire rockets and send those suicide bombers to blow themselves? Muslims need to stop violence in the name of their religion. Why don't you stop killing people, so you would get 72 virgins in some loser world! Israel is doing the right thing and I will support its action. Yes, innocent people get killed, but Hamas need to fight in the open field instead of launching rockets from schools and hospitals.

    Exactly!! Just like the Europeans had a right to defend themselves against the Native Americans.

    Fortunately for them, they did their ethnic cleansing before the mass media and enlightenment. God bless them for it. Now we can come from far and distant places to get permanent residency into this land.

    Unfortunately for the Israelis, like Benny Morris recently said, they couldn't kill all their Barbarians (the Arabs/Palestinians) in the 1940s. Had they completely ethnically cleansed Israel/Palestine of the Arabs back then, we wouldn't have this Israel/Arab problem today.





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    12-29 07:32 PM
    Commercial Venture

    Turning SKS into a commercial venture allowed the firm to tap an unlimited pool of funds from private investors. That, in turn, let the company grow and reduce rates, Akula says.

    �Interest rates have come down over time,� he says. �Because it works, she comes back year after year,� he says of his customers.

    His autobiography, �A Fistful of Rice� (Harvard Business Review Press, 2010), provides a glimpse of the expansion drive.

    Akula, a former McKinsey & Co. consultant, studied McDonald�s Corp. and Burger King Holdings Inc. in 2005 to learn about their speedy training of unskilled workers. He devised a two-month course to train as many as 1,000 new loan officers a month.

    �I now had one goal for SKS; to grow, grow, grow as fast as we could,� he writes. �We could practice microfinance in a way that would serve more poor people than anyone had ever thought possible.�

    Akula says the commercial model of microfinance isn�t the only way.

    Returning to �Roots�

    �It�s an important complement to other forms of finance,� he says. New microfinance companies don�t spend time to build trust, Akula says. �As an industry, we need to go back to our roots,� he says.

    The Reserve Bank is scheduled to report on the industry in January. The finance ministry is planning new rules.

    Sequoia Capital�s Chadha says he�s concerned about �regulatory uncertainty� created by the state ordinance and prefers federal regulation. Nationwide rules would prevent individual states from damaging credit discipline by waiving loans, Microfinance Institutions� Prasad says.

    �It is no different than needing good regulation for stock investing or starting a manufacturing facility,� SKS investor Khosla says.

    �People, Not Profit�

    From Yunus�s perspective, it�s essential that the industry move away from seeking maximum profits and get back to focusing on the poor.

    �If not, you are not helping poor people�s lives,� he says. �You are not patient. You are not restrained. You don�t have empathy for the people. You are just using them to make money. That�s what blinds you when you are in the profit-making world. We need to see the people, not profit.�

    Any such changes would be too late for Atthili Padma and Shivalingam, a young couple in Andhra Pradesh�s cotton-farming village of Chennampalli.

    Padma, a 22-year-old mother of two, walked out of her house on Oct. 7 with her 18-month-old son and 4-year-old daughter, according to Maruthi Prasad, a superintendent at the police station in Shankarampet.

    Padma�s Death

    Instead of heading to her parents� house as she often did, she walked 2 kilometers in the opposite direction. She came to an old Hindu temple where villagers worship Lord Shiva, the god of destruction. Padma continued until she stood in front of a well once used to irrigate crops, her father-in-law, Pochaiah, says. There, with no one to dissuade her, she jumped into the well with her children.

    The day before she died, Padma had visited her parents after arguing with her husband over loans they couldn�t repay, according to Mangamma, the couple�s neighbor.

    Their marriage five years ago was arranged by their parents and the couple had become close and hadn�t fought before that day, Mangamma says. The loans totaled 20,000 rupees, Pochaiah says.

    Padma�s death is recorded as a microfinance-related suicide in the list by the Society for Elimination of Rural Poverty.

    �Sad Day for Microfinance�

    Police arrested Padma�s husband, Shivalingam, on Oct. 13 for allegedly abetting Padma�s suicide. They also alleged that he�d harassed her to provide money to marry him, which is illegal in India, according to Narayana, a constable at the Shankarampet police station.

    Police made two further arrests on Nov. 8: Share Microfin managers Sriram Raghavender, 27, and Polapalli Kumaraswami, 22, also for allegedly abetting the suicide, according to superintendent Prasad. The two managers and Shivalingam have been released on bail and are awaiting a court hearing, Prasad says.

    Advocates and investors such as Khosla say microfinance -- when it works correctly -- is the best way to give the rural poor a shot at better lives.

    The tragedies in India present the worst possible outcome, says Cashpor�s Gibbons, whose Nov. 15 speech opened a morning session of the annual Microfinance India Summit in New Delhi.

    �This is a sad day for microfinance,� said Gibbons, who has promoted the movement for the past two decades.

    �Often people asked me, �What are you doing here?�� he told the audience. �I�ve been always proud to say, �I�m doing microfinance.� Now, when people ask, I feel embarrassed. I feel like hiding somewhere.�