<p>Bengaluru: Several agricultural plots mortgaged to a top public sector bank have been sold, partitioned and gifted without intimation or closure of loans, prompting the government to look into these “irregularities” that may point to a bigger fraud involving farmlands.</p>.<p>Canara Bank, one of India’s largest public sector lenders, has approached the State Level Bankers Committee (SLBC) about “irregularities” in 276 agriculture loan accounts across its Mangaluru, Hubballi and Manipal circles. </p>.<p>Irregularities include sale of mortgaged agricultural land, partition in favour of a legal heir and transfer of ownership through gift deeds -- all without the bank’s knowledge or closure of the liability. SLBC has asked the revenue department for “suitable intervention”. </p>.<p>Canara Bank has said that agriculture loans date back to 2005–06 “all of which have turned non-performing assets”. The fact that mortgaged lands were sold even as the bank had the original documents has baffled authorities. </p>.<p>Revenue Minister Krishna Byre Gowda said he would get details on how the “irregularities” transpired.</p>.<p>“There are many scenarios in which a myriad of frauds happen. One such scenario is when the mortgage is not entered in the Record of Rights, Tenancy and Crops (RTC). I will have to look into the details,” the minister said. </p>.PM Modi launches Rs 35,440-crore 2 big agri schemes, attacks Congress for 'neglecting' farm sector.<p>As things stand, for agricultural loans, banks have to update the RTCs with mortgage details through the Farmer Registration & Unified Beneficiary Information System (FRUITS). </p>.<p>Gowda surmised that the “irregularities” took place before the government made legal changes requiring land-related documents to be fetched digitally during a sale. “Earlier, anybody could generate a physical document. That’s not possible now,” he said. </p>.<p>According to one Canara Bank official, persons buying encumbered agricultural lands are doing so at a risk.</p>.<p>“Such sales of mortgaged properties are happening everywhere. The usual argument by sub-registrars approving those transactions is that the lien will continue. But it only leads to complexity. The land keeps changing hands and the loan repayment doesn’t happen,” the official explained. </p>.<p>Agricultural lands are exempted under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act. This means that banks cannot take possession of and auction agricultural land when the borrower defaults on a secured loan. </p>.<p>Banks in Karnataka have reported total NPAs of Rs 55,307 crore. The agriculture sector has NPAs amounting to Rs 23,528 crore, which is 42% of all bad loans.</p>
<p>Bengaluru: Several agricultural plots mortgaged to a top public sector bank have been sold, partitioned and gifted without intimation or closure of loans, prompting the government to look into these “irregularities” that may point to a bigger fraud involving farmlands.</p>.<p>Canara Bank, one of India’s largest public sector lenders, has approached the State Level Bankers Committee (SLBC) about “irregularities” in 276 agriculture loan accounts across its Mangaluru, Hubballi and Manipal circles. </p>.<p>Irregularities include sale of mortgaged agricultural land, partition in favour of a legal heir and transfer of ownership through gift deeds -- all without the bank’s knowledge or closure of the liability. SLBC has asked the revenue department for “suitable intervention”. </p>.<p>Canara Bank has said that agriculture loans date back to 2005–06 “all of which have turned non-performing assets”. The fact that mortgaged lands were sold even as the bank had the original documents has baffled authorities. </p>.<p>Revenue Minister Krishna Byre Gowda said he would get details on how the “irregularities” transpired.</p>.<p>“There are many scenarios in which a myriad of frauds happen. One such scenario is when the mortgage is not entered in the Record of Rights, Tenancy and Crops (RTC). I will have to look into the details,” the minister said. </p>.PM Modi launches Rs 35,440-crore 2 big agri schemes, attacks Congress for 'neglecting' farm sector.<p>As things stand, for agricultural loans, banks have to update the RTCs with mortgage details through the Farmer Registration & Unified Beneficiary Information System (FRUITS). </p>.<p>Gowda surmised that the “irregularities” took place before the government made legal changes requiring land-related documents to be fetched digitally during a sale. “Earlier, anybody could generate a physical document. That’s not possible now,” he said. </p>.<p>According to one Canara Bank official, persons buying encumbered agricultural lands are doing so at a risk.</p>.<p>“Such sales of mortgaged properties are happening everywhere. The usual argument by sub-registrars approving those transactions is that the lien will continue. But it only leads to complexity. The land keeps changing hands and the loan repayment doesn’t happen,” the official explained. </p>.<p>Agricultural lands are exempted under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act. This means that banks cannot take possession of and auction agricultural land when the borrower defaults on a secured loan. </p>.<p>Banks in Karnataka have reported total NPAs of Rs 55,307 crore. The agriculture sector has NPAs amounting to Rs 23,528 crore, which is 42% of all bad loans.</p>
