Axis Bank loans: Govt. insurance to farmers

The state government has given all its assistance to farmers who had received arrest warrants from Axis Bank and they do not have to worry, Deputy Commissioner SB Bommanahalli told Belagavi on Wednesday.

"Following the instructions of the state government, the district administration will take steps to release all farmers from debts related to loans taken from Axis Bank. First, we will begin a loan exemption procedure for all beneficiaries. About 25% of the 180 farmers with outstanding loans are eligible. The others will be assisted by the single settlement system that will be put in place at the taluk level, "he told reporters. He spoke at the end of a stakeholder meeting, including concerned farmers, officials from Axis Bank, officials of cooperatives and agriculture and key stakeholders. bank managers.

According to him, the team of bank officials, led by S. Dayanand, had accepted DC's proposal to withdraw the lawsuits against farmers. "They said they would take a legal opinion and decide what to do." He felt that the reaction of the bank officials was positive.

At the meeting, the DC told farmers not to worry and that the government would provide all kinds of help. Farmers complained that the bank was unwilling to extend the time allowed to repay the money. They also stated that they were not satisfied with the bank for filing files in Kolkata and not in Belagavi or Bengaluru. "It will be difficult for us to go to Calcutta and find a lawyer to defend us," they said.

An officer who attended the meeting said the DC had objected to the bank's procedure for sanctioning loans, including taking farmers' blank checks. Bank officials said the loans were sanctioned in 2009 and the 180 farmers remained in default for nine years. Some farmers did not even pay a single payment, officials said. They claimed that the warrants were punishable by death and that they were issued only after the farmers refused to respond to several summonses. Although the loans are nine years old, the cases were filed only a few months ago, the officers said.

SP Sudhir Kumar Reddy asked bank representatives to follow established procedures while sanctioning loans and ensuring due diligence when soliciting clients.

The issue hit the headlines after Prime Minister H.D. Kumaraswamy convened a meeting in Bengaluru and warned bank officials not to take action.