Wednesday , March 20 2019

Madras High Court direct Tamil Nadu government to waive all the farmer loans

Madras High Court

Madras High Court tells Tamil Nadu Govt to waive loans of all farmers in cooperative banks earlier Tamil Nadu  govt waived loans of farmers owning upto 5acres land.

On Tuesday the Madras High Court directed the Tamil Nadu administration to waive the loans of farmers obtained by all the farmers, instead of restricting the loans to the Farmers who has less than five acres of land.

The high court also restrained the officials for initiating any recovery or penal from the farmers who had repayment of crop loans.

The loans to the farmers create a burden of Rs 1,980 crore to the Tami Nadu administration and it will benefit 3.01 lakh farmers.

Justices S Nagamuthu and M V Muralidaran gave the order of waiving the loans while allowing a petition by National South Indian River Interlinking Agriculturists Association.

“We are aware that the financial situation of the state administration is grim. The chief secretary in her letter to the advocate general also reiterated the same. The state government is already single-handedly shouldered the burden to the tune of Rs 5,780 crore and it will be an additional burden to bear Rs 1,980.33 crore,” the bench said, adding that the Centre too should step in to share the burden.

The court directed the department of food, consumer protection, and cooperation and the register of cooperative societies to extend the loan waiver scheme under two administration orders of 2016 to all the farmers including who has more than five acres of land.

The bench says that it was a difficult situation and the central government cannot hold any silence, it should come forward to support the state administration to share the burden of waiving loans to the farmers. It also stated that they are hopeful that the Government of India will help the state government and provide the financial help to overcome the situation.

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“We further direct the department to issue a necessary consequential order extending the impugned scheme to all farmers. The order shall be issued within three months from today,” the bench said.

The bench said the classification farmers as small and medium was irrational, illogical and unreasonable and the court will definitely interfere to do justice to the farmers.

“In view of the foregoing discussions and conclusions arrived therein, we are of the view that the denial of the benefit of crop loan to the farmers who had cultivated lands exceeding five acres is a clear discrimination, violative of Article 14 of the Constitution.”

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