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LATEST NEWS UPDATES | HC ‘relief’ for debt-ridden farmers

HC ‘relief’ for debt-ridden farmers

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published Published on Mar 18, 2011   modified Modified on Mar 18, 2011

Small farmers granted waiver by 2008 central scheme win a roller-coaster legal battle

In A significant ruling, the Gujarat High Court has granted loan waiver and relief of around Rs 22 crore to 312 farmers who got these loans from an urban co-operative bank for direct agricultural and allied activities under a central scheme. The court also held that no new condition can be added by the HC to a scheme announced by the central government.

The ruling came on a group of petitions filed by the farmers seeking relief under the Agriculture Debt Waiver & Debt Relief Scheme, 2008 announced by the Centre, which had waived Rs 76,000 crore in loans given to small and marginalised farmers across India between April 1, 1997 and December 31, 2007. At the same time, the scheme had also given relief of 25 per cent on total outstanding overdue loan amount to the farmers having more than 5 acres of land or indulging into other activities like sheep-breeding, dairy, fishery, horticulture and poultry farming.

In 2008, some of the 312 farmers who were account holders of Sardar Bhiladwala Pardi Peoples’ Co-Operative Bank of Valsad district had approached the HC after the bank refused to grant them the waiver/relief under the scheme. The single-judge HC bench ruled that the bank authorities grant them the relief as per the provisions of the scheme. Following this order, while interpreting a provision of the scheme, the bank authorities showed readiness to grant a relief of 25 per cent, instead of the 100 per cent waiver, to eligible farmers.

The farmers subsequently challenged the bank’s stand and moved a group of petitions in the HC in 2009. In this round of litigation, the Reserve Bank of India raised certain objections and proposed to add new conditions to the scheme. A single-bench of the HC accordingly ordered to add some new conditions to the scheme, which was challenged again by farmers in the division bench.

The division bench comprising Chief Justice S J Mukhopadhaya and Justice K M Thaker has now held that no conditions can be added to the scheme of the central government by the HC and the scheme should be read as it is.

Advocate J T Trivedi, along with advocate Brijesh Trivedi, appeared on behalf of some of the 312 farmers who had taken loans from the Sardar Bhiladwala Pardi Peoples’ Co-Operative Bank. Brijesh said with the latest HC judgment, the farmers are likely to get benefit of either waiver or relief to the total tune of Rs 22 crore.

The division bench also held that loan taken under Kisan Credit Card is also covered under the scheme irrespective of the fact whether the societies of which the farmers are members are covered under the scheme or not.

The Indian Express, 18 March, 2011, http://www.indianexpress.com/news/hc-relief-for-debtridden-farmers/764263/0


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