Interest waiver for areca growers

Interest waiver for areca growers

The High Court on Friday disposed of a civil contempt petition against the Union Finance Ministry after its submission that it will waive off the interest on the loans given to arecanut growers.

The decision to waive off the interest was taken based on the directions of the High Court.  A division bench comprising Justice N Kumar and Justice V Suri Appa Rao disposed of the petition filed by Sagara Prantha Adike Belegarara Sangha (SPABS).

During the hearing, the counsel representing the Union Finance Ministry said the government had waived off the interest amount on loan given to arecanut growers. However, the loan amount cannot be waived off. SPABS had filed a contempt petition against the Union Finance Ministry for not complying with the the court orders which had directed to waive off the loans.

The petition had contended that the arecanut growers were suffering from losses and not able to repay the loan as their crops were hit by yellow leaf disease (haladi roga), dry mahali (kole roga) and root grub (beru roga). The petitioners had said that the diseases had affected arecanut crops and sought directions from the court to implement Gorakh Singh Committee report announcing financial package to the affected growers.

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