Madras HC ruling brings relief to debt-hit farmers; spells woes for TN govt

The Madras High Court has directed the Tamil Nadu government to waive loans of all drought-hit farmers and to restrain financial institutions such as banks and cooperative societies from recovering their dues. 

According to market analysts, the condition of the state’s treasury is not good as the TN government has been shouldering loans of farmers in the last few years to prevent farmers from committing suicide in the drought–hit state. 

After hearing the petition filed by the National South Indian River Interlinking Agriculturists' Association, a special division bench comprising justices S. Nagamuthu and M. V. Muralidaran passed the order. “We are aware that the state’s financial situation is grim. The Chief Secretary in her letter to the Advocate General also reiterated the same. The government is already single-handedly shouldering the burden of Rs 5,780 crore and it will be an additional burden to bear Rs 1,980.33 crore,” stated the two-judge bench in its order.

The Association alleged that the state showed step-motherly attitude towards farmers by discriminating against them and slammed the government order by dubbing it as illegal. The Association prayed to the HC to issue directive to the authorities to relieve the farmers from the burden of loan, irrespective of the extent of land owned.