Consider Extending Compensation Benefits To Farmers Who Borrowed From Private Lenders, Karnataka High Court Directs State

A division bench of Chief Justice Abhay Oka and Justice Suraj Govindaraj said "We direct the Chief Secretary to place the observation made by this court in its order dated March 2, before the appropriate authority of the state government which is empowered to take policy decision."

It added "We direct the state government to take policy decision on question of extending the benefits under government order dated July 18, 2003, as modified from time to time, to families of farmers who commit suicide and who had taken loan from private money lenders."

As per information given to the court from 2016 till 2020-21, 125 farmers committed suicide in Shahpur taluk of Yadgir district. Out of 125 farmers who committed suicide, families of 105 farmers are entitled to the compensation. Of which 20 families were held ineligible as the farmers who committed suicide had not borrowed the money from banks. Out of 105 families found to be eligible, still 7 families have not been paid compensation.

In its earlier order taking strong exception to the stand of the state government that compensation will not be granted with respect to loans taken from private borrowers, the Ciurt had noted "State has created two artificial classes of farmers who have committed suicide. The first class is of the farmers who had taken loans or borrowed money from the banks, credit societies, etc. The second class is of those farmers who had taken money from the individual money lenders. The State Government has decided to deny the compensation to the families of the farmers who had taken money from the private money lenders and had committed suicide."

It had thus held "Prima facie, it appears to us that the cause of suicide is the inability of the farmers to repay the borrowed amount with interest. Therefore, prima facie, it is very difficult to accept that the classification made by the State Government will stand the test of Article 14 of the Constitution of India."

The court had directed the Chief Secretary of the State Government to take a clear stand whether the families of the farmers who have taken loan from the private money lenders and who have committed suicide can be excluded from the government assistance of Rs.5,00,000." Today, the government counsel filed the affidavit of the Chief Secretary, which continued with the stand taken earlier.

Following which the bench said "On going through the affidavit itself it is very clear that Chief Secretary has not adverted to prima facie finding recorded in the aforesaid order." The court then directed the state to take a policy decision within eight weeks from today.

It also by way of last chance directed the District level grievance committee (Yadgir Taluk) to comply with directions issued in earlier order dated March 24, in a month's time. The court had then directed the Committee to ask appropriate officers to visit the villages with a view to find out whether there are any farmers who have been denied the benefits of the Crop Insurance Scheme, within one month.

The directions were given while hearing the petition filed by Akhanda Karnataka Raitha Sangh. The matter will be next heard on May 11.