Summons on loan dues raise farmers’ hackles

This was not the right time to initiate such action, Collector tells bank official

April 29, 2017 09:21 am | Updated 09:22 am IST - TIRUCHI

Tale of woe:  Farmers seeking the intervention of Tiruchi Collector K.S. Palanisamy in Friday.

Tale of woe: Farmers seeking the intervention of Tiruchi Collector K.S. Palanisamy in Friday.

Amidst the clamour for waiver of crop loans sanctioned by public sector banks, the receipt of summons from a sub-court by a few farmers here based on lawsuits filed by State Bank of India, seeking recovery of crop loan dues, has raised the hackles of farmers in Tiruchi district.

The move by SBI raised a furore at the monthly agricultural grievances meeting here on Friday, with farmers condemning the bank’s action.

Waving copies of the summons, farmer representatives of various associations resorted to a brief dharna at the meeting venue, forcing Collector K.S. Palanisamy to summon officials of SBI for an explanation.

The summons, copies of which were made available to the media, issued by the Subordinate Judge, Tiruchi, directs C.Balamuthu of Mekkudi, to appear before the court on June 16 in connection with the lawsuit filed by the Woraiyur Branch of the SBI here for recovery of the crop loan dues from him.

The petitioner said that Mr. Balamuthu had taken a crop loan for banana cultivation and propping (of banana trees) of ₹ 2 lakh in May 2009 but had not repaid the loan as per the terms of the loan agreement. The loan, taken on signing of a mortgage deed, should have been repaid in three years.

He sought the court to grant a preliminary decree directing the farmer to pay the total loan due of about ₹4.83 lakh with subsequent interest and costs and in default direct the sale of the mortgaged property after passing final decree.

Raising the issue at the meeting, Puliyur A.Nagarajan, president, farmers wing of the TMC, said that many other farmers of the same village and other parts of the district had received such summons. Condemning such “harsh measures,” he said the move has come as a huge shock for farmers at time when they were fighting for waiver of all crop loans.

An official of SBI, who arrived later, said the action was taken based on instructions from higher authorities of the bank“The action was initiated before the State was declared drought-hit,” he said. He, however, maintained that the bank’s Regional Manager, who was away from station on Friday, was ready for talks with the farmer to resolve the issue.

Collector Mr. Palanisamy told the official that this was not the right time for the bank to initiate such action and directed officials to convene a meeting with the bank officials and farmers early next week.

Mr.Balamuthu said he had pledged about three acres of land for getting the loan. “I could not repay the loan because the banana crop that year was damaged by a gale. I sustained heavy losses in subsequent years too and not in a position to repay the loan,” he said. Mr. Balamuthu said he was served the summons by court staff a few days back.

Mr. Nagarajan demanded the withdrawal of all such lawsuits filed against farmers, stoppage of all debt recovery measures by banks and their agents against farmers and waiver of all crop loans.

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