Following sharp criticism from the Opposition over removing the bar on recovery of farm loans disbursed for the 2016-2017 monsoon season, the Cooperation Department on Wednesday withdrew the advisory given to the Karnataka State Cooperative Agriculture and Rural Development (KSCARD) Bank to recover such loans.
In a clarification given to the MD of KSCARD Bank on Wednesday, the Registrar of Cooperative Societies (RCS) has said that the letter dated December 27, 2019, that had allowed recovery of farm loans has been withdrawn till further orders. In fact, it was the RCS, based on the Finance Department’s opinion, that had lifted the ban on recovery of such loans.
Further, the letter said that the withdrawal order has come from the Cooperation Minister. It said that the Minister had on Wednesday directed for the withdrawal of the December 27, 2019, letter. The RCS letter has also asked the KSCARD Bank MD to inform the decision to all officials and branches and submit a report in this connection.
Considering the serious drought situation that prevailed in the State during 2016-17, the then Chief Minister Siddaramaiah had directed the cooperative sector officials not to recover loans that pertained to the Monsoon season of 2016-17. However, the Finance Department had recently said that the department had not given any concurrence as the decision was taken by the CM, and that the decision of KSCARD Bank not to initiate recovery was not a valid justification.
Soon after media reports emerged, Mr. Siddaramaiah slammed the government and termed the decision ‘anti-farmer’. In a series of tweets late on Tuesday, he warned of agitation if the decision was not revoked.
