HC directs Central Bank to give crop loans immediately

Aurangabad, Oct 22:

Aurangabad division bench comprising Justice S V Gangapurwal and Justice Shrikant Kulkarni dispose of all the civil petitions directing the Aurangabad District Central Co-operative Bank (ADCCB) to follow the government decision and give crop loans to the farmers for Kharif season, 2020, immediately.

The hearing on the petition submitted by a farmer, Kishor Tangade was completed on September 14, 2020. The order on the petition was pronounced on October 9.

ADCCB requested in a petition seeking permission that the bank should be allowed to recover the loans'' interest while distributing the loans under Mahatma Jyotirao Phule Farmer Loan Waiver Scheme for Kharif season or they should be granted permission not to disburse loans if the interests are not paid.

During the hearing, the bank had given the written assurance that it will not demand for interest. Similarly, the procedure to return Rs 5 crores collected as interest from the farmers. The bank will take no objection certificate instead of no dues and 55184 farmers have been benefitted through it so far. Crop loans will be provided to the remaining 20143 farmers soon, the bank mentioned in the application.

Considering all the facts, the division bench directed to follow the government notifications dated December 27, 2019 and January 17, 2020 and disburse the loans to the farmers.

Adv Satish Talekar and Adv Pradnya Talekar appeared for the petitioners, senior counsel Rajendra Deshmukh for the ADCCB, Adv Vitthal Dighe for the societies and Adv D R Kale for the government.

As per the government notifications, the state government on December 27, 2019 waived the farmers'' loans and interest during the period between April 1, 2015 and March 31, 2019. Later, the government extended the period from March 31, 2019 to September 30, 2019. However, the farmers would not benefit from the scheme after September 30, 2019 and hence a decision was taken that the bank and the societies should not recover the loan and interest.

After the Corona outburst, the farmers had the obstacles for getting new crop loans for Kharip, 2020. Hence, the government on May 22, 2020, through a notification directed to show the government''s debit and disburse the loans to the farmers for Khaip, 2020. The government will pay the concerned amount to the concerned co-operative banks.