Supreme Court stays Madras HC directive to waive farm loans

The Madras High Court had taken cognizance of farmers protest at Delhi's Jantar Mantar

The Supreme Court on Monday stayed the Madras High Court's order on farmer loan waiver. The High Court in April had directed the Tamil Nadu government to waive off farmer loans from cooperative societies but the same was stayed by the Apex Court.

The Supreme Court's order comes as a major setback to Tamil Nadu farmers who have been holding protests both in the state and in Delhi demanding a loan waiver over crop loss due to drought. A division bench of the Madras High Court comprising Justices S Nagamuthu and M V Muralidharan had asked Tamil Nadu government to waive off farmer loans. The state government had earlier waived off loans from cooperative banks for farmers owning up to 5 acres land.

While passing directives asking the Tamil Nadu government to waive off farmer loans, the Madras High Court made a few observations. The Court noted that that state government was already single-handedly shouldering the burden of Rs 5,780 crore and another waiver would mean an additional burden of Rs 1,980.33 crore. While directing the government to waive off loans, the court observed that the Centre should come forward to extend financial help to Tamil Nadu.

Farmers in Tamil Nadu had protested in Delhi with skulls drawing the attention of the nation towards their plight. Their demands included state drought package of Rs 40,000 crore, waiver of farmer loans and formation of Cauvery management board.

OneIndia News