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PIL filed challenging the agricultural loan waiver


June 28, 2014 - Hyderabad

Former MLA Adusumilli Jayaprakash has filed a Public Interest Litigation (PIL) in High Court of Judicature at Hyderabad for State of Telangana and Andhra Pradesh urging to declare the waiver of agricultural loans availed from banks as illegal, arbitrary and injurious to economy.

The former MLA made the Centre, Reserve Bank of India, Indian Banks Association, Andhra Pradesh and Telangana State Governments, Election Commission of India, Telugu Desam Party (TDP) and Telangana Rashtra Samithi (TRS) as respondents.

The petition will come up for hearing on Monday. The petitioner says that the waiver of crop loan violates the article 14 and 293 of the Constitution and wanted the court to direct the State Governments to restrain from spending or utilizing public funds for the loan waiver.

RBI turns out State Government’s request

Meanwhile, the Reserve Bank of India has turned down the Andhra Pradesh State Government’s request to the scheme. In this back ground, the government is pinning its hopes on rescheduling of loans given to farmers in drought and cyclone-affected mandals in the last kahrif and rabi season.

It may be noted here that the united Andhra Pradesh Government has issued a Government Order in January declaring 113 mandals as drought-hit and 462 as cyclone-affected and it had been writing for rescheduling of the loans but no vain. Though Kotaiah committee members met the RBI Governor for rescheduling of loans could not get any assurance, according to sources.

Andhra News

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