Bombay HC asks banks to disburse crop loans, refund Rs 5-crore curiosity to farmers

Written by Omkar Gokhale
| Mumbai |

October 19, 2020 2:13:56 am

Bombay hc, maharashtra farmers, maharashtra farm loans, maharashtra banks farm loans, maharashtra farmers loan eligibility, indain express newsThe order comes as a serious reduction to almost one lakh farmers affected by the vagaries of climate final yr. (Representational)

THE AURANGABAD bench of the Bombay High Court has directed banks to right away disburse crop mortgage to the farmers eligible beneath the Mahatma Jyotirao Phule Karjmukti Yojana with out insisting for cost of curiosity on the previous mortgage that was waived by the state authorities from October 1 final yr. The courtroom additional mentioned if banks have already recovered the quantity in direction of the curiosity, the identical must be instantly reimbursed to farmers.

The order comes as a serious reduction to almost one lakh farmers affected by the vagaries of climate final yr who’re nonetheless disadvantaged of the good thing about contemporary crop mortgage for the continued kharif season.

A division bench of Justices S V Gangapurwala and Shrikant D Kulkarni on October 9 handed a ruling on public curiosity litigation (PIL) filed by RTI activist and agriculturist Kishore Tangade, filed by way of advocate Satish B Talekar, who sought from the banks to not cost curiosity from October 1 final yr until the precise profit was given to the eligible farmers.

In January this yr, the state had rolled out its flagship scheme — writing off arrears as much as Rs 2 lakh for loans availed between April 2015 and March 2019. The state had provide you with the scheme after it seen that between 2015 to 2019, a drought-like scenario prevailed all through Maharashtra whereas some locations witnessed unseasonal rains leaving agriculturists in losses.

Advocate Talekar submitted that regardless of the state authorities’s instructions, the banks have been holding the farmers to ransom by telling them that new loans could be launched provided that the farmers paid curiosity accrued after October 1 final yr on earlier loans. He mentioned the discharge of crop loans to almost one lakh beneficiaries have been stalled.

After listening to submissions, the bench noticed, “The yr 2020 is a tumultuous yr. The total nation is affected by the pandemic of Covid-19. Fortunately, this yr the state witnessed well timed rains and it’s crucial that the agriculturists get monetary help for the kharif sowing season.”

It added, “We hope and belief that the banks could be alive to the issues of agriculturists. The precarious situation of farmers has been thought of by the state authorities within the mortgage waiver scheme. Though the mortgage is waived, the beneficiaries can’t be disadvantaged of the crop mortgage for the kharif season 2020 on technical floor.”

The courtroom additionally directed the banks not solely to disburse loans to remaining beneficiaries beneath the scheme on the earliest but additionally to refund the curiosity, to the tune of Rs 5 crore, collected by them instantly to farmers and disposed of the PIL.

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