‘Disappearance’ of farm loan waiver money: K’taka CM blames cooperative banks

The DCC banks had to pay back loans to Apex Banks and they have used the loan waiver money to return it, Kumaraswamy said.

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In the beginning of June, over 13,000 farmers in Kalaburgi and Yadgir woke up to the reality that the money they had received from the loan waiver scheme was returned to the government. Over three weeks after the incident came to light, Chief Minister HD Kumaraswamy, who visited Gurmitkal in Yadgir said that the district co-operative banks and Apex banks had made a mistake and that the state government had not taken away the farmers’ money.

Read: Karnataka farm loan waiver money ‘disappears’ from accounts of over 13,000 farmers

Speaking to the people of Yadgir during his village stay campaign, CM Kumaraswamy said, “The DCC (district cooperative central banks) have made mistakes. The DCC banks had to pay back loans to Apex Banks and they have used the loan waiver money to return it. This was not an error on behalf of the government. We will make sure your money is returned,” Kumaraswamy said.

The Chief Minister said that the government had released Rs 320 crore to DCC banks to waive loans and that 72,000 farmers’ loans worth Rs 199 crore had been waived. “The remaining money was returned as the DCC banks owed Apex Banks money. They were not supposed to use the loan waiver money. However, I have directed officials concerned to release extra Rs 100 crore so that farmers will get their money on time,” Kumaraswamy added.

Prior to May 23 (Lok Sabha results), the state government had announced that loans in commercial banks worth Rs 4,830 crore had been waived for 7.49 lakh farmers till April 2019; and loans in cooperative banks worth Rs 3,488 crore were waived for 8.1 lakh farmers. The CMO had specifically stated that Kalaburgi district had the maximum number of beneficiaries from the co-operative bank sector (72,654), followed by Haveri (62,915) and Raichur (49,280). In commercial banks, Belagavi district had recorded the highest number of farmers whose loans have been waived (87,276), followed by Tumkur (82798) and Mandya (78,167).

When the issue came to light, Chief Minister HD Kumaraswamy had said that the discrepancy was noted in the bank accounts of 13,988 farmers in the state and had promised to probe the matter. A meeting was held with representatives of various banks on June 14.

However, Kumaraswamy had blamed the nationalised banks at the time and not the DCC banks. “Since this morning (Tuesday), news is being circulated that the state government had deposited the money ahead of the elections only to win votes. What will you (the media) benefit from this? The discrepancies have occurred in nationalised banks. You (the media) praise Modi every day. Why not question him about this?” Kumaraswamy said.