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in Administrative Law Civil Law Banking Law
Asked August 19, 2017

Government's failure to issue policy for farmers' redressal

  • 1 Answer

Sir my grandmother took loan from sbi for green house which is a govt scheme we will return 1/4 part of loan but after some time all green houses failed and we are not able to return remaining amount. The Bank filed a case against all green house owners in tribunal recovery court and won the case. The court ordered to take the land of the farmers but the government manageged to get a stay order on this decision of the Tribunal. The government officilas assured that a policy will be formulated to manage the issue but nothing much has been done. Instead, the Bank has been calling us regularly to deposit the money.  sir please give a solution.

Answer 1

If a stay order has been issued by the Court, then the Banks cannot take away the property from you. In case the Bank is bothering your grandmother, she can file a complaint with the Bank Manager or the Ombudsman for the Bank. 

It must be pointed out that as per the scheme the Government had offered to pay 3/4th of the loan while 1/4th of the loan will have to be paid by your grandmother. You should clarify with the government authorities that the policy to manage the issue will cater to the 3/4th portion of the loan or the entire loan amount. In case the Government is going to take care of only 3/4th the Bank may demand the 1/4th porion of the loan from your grandmother. 

Make sure, that you have copy of the government's representation before the Court made during the proceeding for the stay order and documents to prove that the Government has promised that the non-payment of the loan will be taken care by the Government. You can employ these documents to file an application before the concerned governmen officials to expediate the matter. In case there is no response, you can file a writ petition before the Court against the Government for the non-payment of the liability as envisaged under main policy. 

Agree Comment 0 Agrees over 3 years ago

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