 |
|
 |
|
|
|
|
 | | |
|
|
|
Kerala awaits RBI, Nabard nod
news |
|
|
James Paul
15 December 2001 |
|
| |
Thiruvananthapuram:
Revenue and Law Minister K M Mani said here that the
state government is awaiting clearance from the Reserve
Bank of India (RBI) and Nabard to reschedule loans taken
by Kerala farmers from scheduled commercial banks.
In an article explaining the salient features of the Kerala
Agriculture Debtors (Temporary Relief) Act, passed by the
state assembly recently, Mani said the government plans
to take steps to get short-term loans rescheduled as medium-term,
and medium-term loans as long-term loans respectively, subject
to the RBI clearance. The government would also make provisions
for the repayment of non-performing loans by extending concessions
in terms of interest payments and installments.
Mani said this is the first time that the state government
is taking such a comprehensive step while taking on the
burden of providing relief to the farming community, reeling
as it is under a major crisis. The state was witness to
two similar Debt Relief Acts in 1958 and 1970, but these
covered only loans taken from individual money-lenders and
did not cover loans taken from cooperative societies or
the loan commitments to the government involving payments
out of the consolidated fund. In 1955 and 1956, similar
Acts were passed in Malabar and Travancore-Kochi covering
loans taken from private parties.
Even though the government would have to incur an additional
financial burden of Rs 150 crore under this head, the farming
community would benefit by an estimated Rs 600 crore. Terming
the Debtors Act as a landmark legislation, Mani said it
would provide relief to farmers owning less than two hectares
with an annual income of Rs 60,000. It would provide relief
to agriculture workers as well.
All loans taken by them from cooperative banks, the government
or individuals would come under the purview of the Act.
The benefits cover not only government loans but all other
overdues payable to the government, including loans taken
from government-owned financial institutions. But loans
taken under the Kudumbashree scheme, implemented with the
financial assistance of Nabard, and the housing schemes
implemented by the Kerala State Housing Board with the financial
assistance of Hudco have not been brought under the purview
of the Act.
The farmers income would not be decided on the basis of
the family income. All loans taken by a member or more than
one member of a family from one or more than one bank will
get the benefits on all loans that do not exceed Rs 50,000.
The new Act declares a moratorium of one year on all loans
taken from the government or individual financiers and on
all such overdues. In the case of cooperative banks, the
moratorium would be for six months. Loans need not be repaid
during the moratorium period. The overdues need be repaid
in 30 installments after the moratorium period.
Mani said the government would pay up the estimated Rs 50-crore
loss that the cooperative banks would have to sustain on
interest dues. In addition, the government will also take
on the burden of the Rs 100-crore loss on interest dues
on loans taken from the government and private agencies.
Mani said only the RBI-nominated rates would be applicable
to loans taken from private agencies irrespective of the
interest rates mentioned in the loan documents. Any interest
rate lower than the RBI rates would prevail. Revision of
interest rates on all repayments made prior to the implementation
of the Act would not be allowed.
Even though a moratorium period, ranging from six months
to one year, has been provided along with a 30-month installment
facility, those who pay up their overdues ahead of the stipulated
time would be eligible for all the benefits announced as
per the Act.
The Debtors Act also prohibits filing of any kind of appeal
or revision petition or review petition in any civil court,
tribunal or any other authority in all cases disposed off
against the farmer. All court proceedings relating to recovery
of loan dues and other commitments have been stayed during
the moratorium period.
Similarly, all proceedings, complaints and appeals would
be stayed during the moratorium period. In addition, the
Act gives protection to farmers against whom criminal proceedings
have been initiated for non-repayment of dues in the event
of his filing a petition claiming to be a farmer coming
under provisions of the Act.
The protection has been extended to all cases related to
bouncing of cheques filed in criminal courts under Section
138 of the Negotiable Instruments Act. Mani said his government
is in the process of preparing comprehensive schemes to
revive the fortunes of the agriculture sector.
|
|
|
| |
|
|
|
|
|
|
