Banks and financial institutions are harassing farmers in the flood-affected areas for repayment of loans, farmer leaders complained to Deputy Commissioner S.B. Bommanahalli here on Tuesday.
In a meeting with farmers, bank managers and government officials, farmers poured out their woes out before Mr. Bommanahalli.
Prakash Nayak, farmer leader, said that some banks, micro finance institutions and non banking finance companies had employed recovery agents to recover outstanding amounts from farmers. They are using force and unreasonable tactics to recover money, he complained. When Mr. Bommanahalli asked the leader to provide specific details, Mr. Nayak said he would submit details in writing.
He asked farmer leaders to spread awareness among farmers about summons and warrants. Farmers who receive such notices should not panic. The district administration will provide them free legal aid, he said.
He clarified that the practice of disbursing loans after taking blank cheques from farmers was illegal. “If banks ask you for blank cheques, you should bring it to the notice of the local panchayat or revenue officials. Action will be initiated against such lenders,” he said.
Banks should realise the gravity of the situation. Half of the State has been affected by floods that have caused unprecedented losses. Farmers, weavers and others are suffering from loss of livelihood, he said.
In such times, bankers should adopt a humanitarian approach rather than think of legal challenges. Bankers should consult lawyers and stop issuing summons and warrants to defaulting farmers. Farmers will repay loans when their conditions improve. The State government is committed to supporting them, he said and warned bankers of strict action if they did not stop recovery immediately.
Mr. Bommanahalli asked banks to limit their legal jurisdiction to the district. “Some farmers have been issued warrants from banks in Kolkata and Mumbai. How do you expect a flood-hit farmer to travel to such far off cities for appearing in a loan default case?” Mr. Bommanahalli said.
District Lead Bank manager Arun Kumar, Police Commissioner B.S. Lokesh Kumar, Superintendent of Police Lakshman Nimbargi and others were present.
