Scores of farmers have been left in the lurch with banks asking them to pay up interest dues on crop loans waived by the previous H D Kumaraswamy-led government.
The former CM has, meanwhile, accused the Yediyurappa government of cheating farmers by conspiring to deny loan waiver benefits on the pretext of document verification.
Farmers say that despite the loan waiver, banks have refused to issue No Objection Certificates (NOCs) to them for fresh loans, demanding interest from them, as the government has delayed payment of waived loans to the banks.
Officials said they are yet to receive any complaints on the issue, adding that banks have been directed not to demand interest from farmers on waived loans.
Ramesh Desai, a farmer from Belagavi district and a beneficiary of the loan waiver scheme, said that though the waiver announcement came in June 2018, funds to waive loans were transferred months later. “Now, banks are demanding interest for the period between the announcement and actual payment of the waived amount,” he said.
And the demand to pay interest had new conditions. Unlike the three per cent interest rate for farm loans, banks were allegedly demanding 14% interest for NOCs, said another farmer.
Kurabur Shanthakumar, president of the Karnataka Rajya Kabbu Belegarara Sangha, said farmers were being harassed by bank managers over payment of interest. “The issue was taken up with the chief minister during the pre-budget meeting. I will also write to the government on this,” he said.
Kumaraswamy alleged that the BJP government was conspiring to deny loan waiver benefits to more than one lakh farmers, citing irregularities in documents submitted. In a series of tweets, he accused the state of diverting the Rs 25,000 crore set aside for loan waiver to other purposes. “I will raise my voice against the government in the Legislative Assembly session as it is acting irresponsibly,” he wrote.
However, Chief Minister B S Yediyurappa in a tweet assured that none of the farmers will be denied loan waiver benefits. "Some rumours are being spread but farmers need not worry about it," he said.
Officials involved with the scheme said banks have already received directions not to demand interest on the waived amount. Despite repeated attempts, officials at the State Level Banking Committee, who are involved with the scheme, were not available for comment.
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