The Supreme Court
on Monday stayed the Madras High Court
judgment waiving loans for farmers, irrespective of their land holdings.
The apex court’s move is a setback to the Tamil Nadu farmers
who had earlier agitated in Delhi for loan waiver and demanded drought relief to the tune of Rs 40,000 crore.
The Madras High Court, in April this year, had directed the government to provide full waiver, irrespective of their land holdings.
In July, the state government had waived off debts of marginal and small farmers
with land holdings below five acres and who had suffered crop failure.
The reason given by the high court was that the loan documents might not have reflected the extent of ownership. The order raised the liability of the government up to an estimated Rs 5,780 crore.
The loan waiver was part of the All India Anna Dravida Munnetra Kazhagam election manifesto and was notified in May 2016.