Supreme Court stays Madras HC order on waiving farm loans

In April this year, the Madras High Court passed the order after the state farmers protested in New Delhi's Jantar Mantar demanding Rs 40,000 crore assistance from the Centre.

By: Express Web Desk | New Delhi | Updated: July 3, 2017 1:02 pm
Tamil Nadu, TN strike, farmer strike, TN farmer strike, DMK bandh, DMK farmers, Edappadi K Palaniswami, India news, Indian Express Tamil Nadu farmers during their protest at Jantar Mantar in New Delhi. (file photo)

The Supreme Court stayed the Madras High Court order directing the Tamil Nadu government to waive farm loans, irrespective of the farmers’ land holding. In April this year, the high court passed the order after the state farmers protested in New Delhi’s Jantar Mantar demanding Rs 40,000 crore assistance from the Centre.

In July, the state government waived loans taken out by marginal and small farmers, and extended partial debt relief for farmers with bigger land holding.  The high court, however, ordered the government to extend the relief to all the farmers, irrespective of their land holding.

“The land holding register and the loan register maintained by the banks do not necessarily reflect the actual land ownership. A farmer might have shown land details only for which he is seeking a loan,” the court said.

The order meant an additional 300,000 farmers will become eligible for the debt waiver scheme. The burden on the state exchequer increased from Rs 5,780 crore to Rs 7769.33 crore.

Earlier this year, farmers from Tamil Nadu protested for over 30 days at Jantar Mantar demanding the government to write off their loans and bring out a drought relief package. They made headlines for their novel, sometimes shocking, forms of protest. They tonsured their heads, took out mock funerals, flogged themselves, stripped outside the PMO office, and sat with skulls of farmers who committed suicide. The farmers had called off the agitation after a meeting with Chief Minister Edapaddi Palanisami.

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  1. S
    siva
    Jul 5, 2017 at 1:23 pm
    Dear All Gently man, i think you people not from Agriculture family, See This year there is notning in our land ..No rain ,,Crop also completely gone.. Very Difficult to run the family ..meanwhile we have to pay the Bank Loans, outside borrowers loan's,Co operative society loan's.. we are not a beggars..People's should understand one thing ,,Every day you are eating food ,who given this one..can you imagine without can you alive.. Who are all not doing Agriculture ,,those people's is an real beggers cluding Modi ji,sonia ji,Ambani's,crorepathys.below commeted guys.. DEAR HON SUPREME COURT, WE DON'T WANT LOAN WAIVE OFF BUT NEED FOLLOWING THOSE 1.24/7 WATER FACILITIES. JOIN ALL RIVERS FIRST..
    Reply
    1. R
      RAj
      Jul 6, 2017 at 10:05 pm
      Dear ji.. i will respect your feelings.. Agriculture is backbone of India IAI HINDHI
      Reply
    2. V
      Vensuslaus Jesudason
      Jul 3, 2017 at 6:35 pm
      The Hon. Supreme Court has put an end to the fad of writing off farm loans. Loan waiver is a seriously flawed idea. State governments resort to farm loan waivers in order to boost their electoral chances, trying to grab or retain the support of farmers. No one cares whose money is used to s out farm loans and the consequences arising out of outright waivers. Credit discipline breaks and banks suffer grievous loss due to waiving of farm loans. There are many other losers in the great Indian game of farm-loan waivers. It is surprising that the Madras High Court had ordered the government of TN to write of vast amount of agricultural loans! It was felt by experts that the Madras HC order was erroneous. The SC has done the right thing by staying the Madras HC order.
      Reply
      1. B
        Bhayaanak Bhangii
        Jul 3, 2017 at 3:36 pm
        Pehlii baar Supremd court naeyy koii dhaang kaa decision diyaa haii. Yeah salleyy karjaa maaf walley farjii Kissan haii. Yeah jo Delhi maeyy Lungistanio kaa jantar mantar paeyy drama thaa iskaa leader Ayyakannu ek Crorepatti waakill haii, D. K. Bose kaeyy pass Audi Car haii. Koii karjaa maaff nahii honaa chahiyee, agaar khettii maeyy kamaii nahii ho rahii tohh koii aurr kaamm dhaandaa Karoo, yeah bhikhmangoo kii tarahh karjaa maaf kaa raag alapnaa baandd karo
        Reply
        1. S
          S.Suresh
          Jul 3, 2017 at 2:49 pm
          At least big land holders need loan interest to be waived. Last year they lost whatever they invest in land.
          Reply
          1. L
            l s
            Jul 3, 2017 at 2:43 pm
            The Supreme Court should stop and ban all state govts from giving loan waivers. This loot of the nations money should stop immediately. Huge scams in these names are happening. Even waivering of bank loans should stop. These are nothing but looting money in one way or the other. The court should act fast in these matters.
            Reply
            1. G
              Gg
              Jul 3, 2017 at 1:57 pm
              It should be a organised ins utional scheme from govt. So that farmer can produce sell crop according to govt demand and can take loan from govt mainting the demand supply chain. Otherwise every time waive loan without taking same loan amount crop from farmer, will destroy the economy of country and govt cannot fund on industry, science technology, defence and social welfare scheme. I doubt there are foreign conspiracy on farmer movement.
              Reply
              1. B
                Bharat Maa
                Jul 3, 2017 at 1:24 pm
                where was supreme court when Mallya took loan and like him many others to intervene?
                Reply
                1. S
                  Shamsul Islam
                  Jul 3, 2017 at 1:03 pm
                  Unfortunate, judiciary does not intervene when loans worth lakhs of crores taken by politically connected moneyed parties are waved off.
                  Reply
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