The Tamil Nadu government has informed the Supreme Court that it has waived crop loans worth Rs 12,110.74 crore for 16,43,347 farmers. Further, the government told the Court that it has issued guidelines separately for the waiver of those who have availed short-term crop loans and short-term crop loans by pledging jewels (jewel loan (agriculture) through cooperative institutions, without prescribing any acreage limit.
In view of the undertaking filed by the State of Tamil Nadu, the Supreme Court has disposed of the matter.
The bench of Justices D.Y. Chandrachud and A.S. Bopanna was seized of the plea filed by Tamil Nadu against the Madras High Court direction to provide loan waiver scheme to all categories of farmers including those farmers whose land holding is more than 5 acres and restrained it from initiating action against farmers for recovery of crop loan outstanding due to cooperative societies/banks as on 31.03.2016.
On July 3, 2017, the Top Court had issued notice and stayed the direction of the High Court. On September 18, 2019, the Court was informed by the state government that because of financial constraints/ implications and other considerations the waiver of loan was not extended to the other categories of farmers excepting marginal farmers and small farmers.
In view of the stand taken by the State government, the Court had passed the following order that day:- “We are of the view that though there is an interim order passed by this court it is open to the government of Tamil Nadu to consider grant of any limited benefit to other categories of farmers can be given or not and if so to what extent the government of Tamil Nadu may consider this question without any prejudice to the contentions on merits by either of the parties.”
On Friday, Tamil Nadu counsel Senior Advocate Jaideep Gupta submitted that the affidavit regarding fresh policy for waiver crop loan has been filed by the state government. “Thus, by virtue of the Crop Loan Waiver ordered by the State Govt as per the Orders of the Supreme Court, have been complied with and the benefit has been provided to Non-Small Farmers/ Medium Farmers also,” he added through the letter dated 10.11.2021 issued by the State Govt.
Background
Before the Madras High Court, the National South Indian River Interlinking Agriculturists Association had filed a plea against the State of Tamil Nadu and sought directions to grant debt relief for the entire agriculturists for loan borrowed from cooperative societies in Tamil Nadu irrespective of land owned by them.
The High Court had allowed the prayers made by the Petitioners and opined, “We are of the view that the denial of benefit of waiver of crop loans to the farmers who had cultivated lands exceeding 5 acres is a clear discrimination violating Article 14 of the Constitution of India.”
The high court had directed to extend the crop loan waiver scheme to all the farmers, including those with more than 5 acres land and directed Tamil Nadu to extend the crop loan waiver scheme to all farmers. The prayer of expanding the policy for all the farmers was allowed by the High Court and the impugned government orders were set aside.