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Allahabad High Court shocked at 4-year delay in approving farmer’s loan application

The Lucknow Bench of the Allahabad High Court has taken serious note of the fact that a crop loan application of a farmer has not been paid attention to for four years.

The Court ordered the Principal Secretary Agriculture to investigate the matter and send the report to the court. Along with this, he has been asked to take a decision on the related letter in 3 weeks.

A single-judge bench of Justice Shree Prakash Singh passed this order while hearing a petition filed by Ram Chandra Yadav.

The counsel for the petitioner submitted that he applied for KCC Loan from the respondent-Bank for purchasing seeds, fertilizer and other agricultural equipment, for which, he entered into an agreement and after completing all the requirements, the Bank sanctioned the KCC Loan on June 17, 2012.

In the meantime, the State Government issued the guidelines through Crop Debt Redemption Scheme, 2017 for redemption of debt for those farmers, who are not having more than 2 hectares of land prior to March 31, 2016.

Since the petitioner was under the aforesaid category and as such, he moved an application dated December 14, 2017 before the respondent no 3/ Bank, which was earlier Allahabad Gramin Bank and is now known as Gramin Bank of Aryavart, through registered post on December 27, 2017 with a request to link the Aadhaar number in the KCC loan account.

He submitted that aforesaid application kept on pending before the District Level Committee and the District Level Committee has taken the decision on 06.01.2020 and has sent the application for approval of the State Government, which is still pending consideration.

He further submitted that, in fact, the petitioner is a farmer and he is running pillar to post for redemption of debt, for which he is entitled and the matter is pending since last more than three years before the authorities.

On the other hand, the counsel appearing for the State submitted that, in fact, the matter has been referred before the State Government i.e. before the Principal Secretary (Agriculture) for approval vide its letter dated January 6, 2020. He submitted that since the aforesaid scheme was dropped in 2019 and there is a gap and, as such, for those reasons, the same has been sent for approval of the State Government.

The counsel appearing for the Bank submitted that, in fact, the obligation for payment of the aforesaid amount would come upon the Bank, once the approval is been given by the State Government.

Having heard counsel for the parties and after perusal of records, the Court found that the petitioner has very well applied seeking the benefits of Crop Loan Redemption Scheme, 2017, which is pending since 2018 before the authorities including the District Level Committee.

Since the matter is pending for approval before the Principal Secretary (Agriculture), therefore, the Court directed the Principal Secretary (agriculture) to take decision on the aforesaid letter dated January 6, 2020 within a period of three weeks from the date of a certified copy produced before him.

The Court said it is a startling fact that the authorities have become so careless towards the last person of the society as a matter of poor farmer is kept on pending since last four years, though, there was a specific scheme with regard to the redemption of debts and for taking decision that whether the petitioner is entitled for the benefit of the aforesaid Scheme, 2017 or not; it has taken three years. This Court has taken serious note of this fact and it has become emergent to take certain steps so that such unfettered and unbridled acts of the public authorities could be restrained.

The Court further directed the Principal Secretary (Agriculture) to carry out an inquiry to find out on who os esponsible for the delay and laches.

“The Principal Secretary (Agriculture), UP, Lucknow is further directed to submit a report within 30 days through Senior Registrar to this Court,” the Court ordered.

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