Chennai: A division bench of the Madras High Court has directed the Tamil Nadu government to waive loans of all farmers irrespective of their landholding.
The bench head by Justice S Nagamuthu asserted that there was no rationale behind the classification of farmers into three groups for granting loan waiver.
The High Court’s direction will force the state government to bear an additional burden of 19.8 billion rupees over the already committed 57.8 billion.
The order brings relief to 301,926 farmers in addition to 1,694,145 farmers, who have already benefitted.
Observing that the order could prove burdensome for the state, the court urged the federal government to share the burden. “We are hopeful that the Government of India will share the burden considering the unprecedented situation prevailing in the State.”
The court order came on a Public Interest Litigation (PIL) moved by P. Ayyakannu of National South Indian River Interlinking Agriculturist Association seeking to quash a government order dated June 28, 2016 granting farm loan waiver to a section of farmers (small and marginal) and direct the government to grant the waiver to all farmers who have borrowed from the Co-operative societies irrespective of the extent of land they hold.
Opposing the PIL, the state government contended that the court cannot interfere in the policy decisions of the government, more particularly in the loan waiver scheme, as it involves economic policy of the government, The Hindu reported.