Madras HC Asks Govt To Extend Crop Loan Waiver Scheme To All Farmers [Read Judgment]

Denial of benefit of waiver of crop loans to farmers who had cultivated lands exceeding 5 acres is a clear discrimination violating Article 14 of the Constitution, the Bench said.

In a big relief to farmers in Tamil Nadu, the Madras High Court has asked the government to extend the crop loan waiver scheme to all farmers, including those whose land holding is more than 5 acres.

A bench comprising Justice S Nagamuthu and Justice MV Muralidaran also held that the denial of benefit of waiver of crop loans to farmers who had cultivated lands exceeding 5 acres is a clear discrimination violating Article 14 of the Constitution.

The court also suggested the Government of India to consider this unprecedented situation prevailing in the state and extend its helping hands to the state government to reduce its financial burden.

“To save the farming community is not entirely upon the shoulders of the State Government, but on the Central Government also,” the bench said.

The National South Indian River Interlinking Agriculturist Association had approached the high court challenging the government orders on the ground of discrimination and arbitrariness as, according to him, it materially discriminates the farmers whose “land holding” exceeds five acres and that the said benefit of the government orders should have been extended to all farmers, irrespective of the extent of their agricultural land holdings as on the date of sanction of loan.

In the government orders, the waiver of the outstanding crop loan - medium term (agriculture) loan and long term (farm sector) loan as on 31.03.2016 - was given only in favour of small and marginal farmers and not for other farmers.

The court said it could interfere with the government policy since it has found that the classification of farmers is irrational, illogical and unreasonable, and hence it has to necessarily interfere to do justice to the farmers.

Justice Nagamuthu also quoted these lines from Thirukural: “They nothing ask from others, but to askers give, who raise with their own hands the food on which they live,” and then observed: “Yes! It was the position of farmers 2000 years ago. Now?”

Read the Judgment here.