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Defaulting Punjab farmers face jail as banks file criminal cases -Anju Agnihotri Chaba

-The Indian Express

All the farmers who faced criminal action for defaulting on loans say they were made to sign on blank cheques.

“If you write about our plight, will the government stop banks from sending us to jail?,” asks Ujagar Singh.

The 60-year-old from Jhumba village in Bathinda district is among scores of Punjab farmers who have been convicted or are facing trial in criminal cases of cheque-bouncing filed by banks under Section 138 of the Negotiable Instruments Act, 1938 (NIA). The bulk of these cases involve small and marginal farmers who qualify for the state government’s loan waiver scheme.

On February 8, a local district court sentenced Ujagar, who owns 2.75 acres, to 18 months of rigorous imprisonment in two cases — the first one filed on February 2, 2016, by the Bathinda District Central Cooperative Bank for non-repayment of a crop loan of Rs 2,30,800 sanctioned in 2011, and the second filed on March 3, 2016, by the Punjab State Cooperative Agricultural Development Bank against a Rs 3.3 lakh loan taken for purchase of a Tata Xenon pick-up vehicle in 2013.

“I was paying interest against the loan till 2015, when my entire cotton crop was eaten by chitti makhi (whitefly pest). Even on the vehicle loan, which I took hoping to earn some extra income, I didn’t default for the first two years,” says Ujagar, adding that both banks took signed blank cheques from him. “I signed on them without knowing that these would one day turn into hathkadi (handcuffs) for me,” he adds.

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