Replying to a question from Govardhan Sharma (BJP) and others, Chavan said the Government was reviewing the entire scheme and will hold a meeting with concerned members and Opposition Leader in the house to discuss the modalities.
Minister of State for Housing Sachin Ahir said 478 out of 552 proposals received under the scheme from Akola district in 2007/08 were forwarded to banks seeking loan facility but the banks cleared only 26 proposals.
He also informed the House there were 63 branches of 14 Nationalised banks selected for implementing the scheme.
Opposition benches led by Davendra Phadanvis (BJP) and others sought to know why the Government was reluctant to take action against the banks not helping the poor applicants.
Chavan said the Government was reviewing the whole policy as such and though it is not within the purview of the state to take action against banks, it would consider to make necessary provisions for action against nationalised banks in the revised policy.
Deputy Speaker Vasant Purke sought to know whether banks were reluctant because there were no guarantor for paying the principal amount and whether they were apprehending that the NPAs would rise.
BJP leader Eknath Khadse asked Chief Minister to rein in the erring nationalised banks for defying the State government.
He said though the state government may not be competent to initiate action against nationalised banks but Chief Minister can surely write a letter to the Reserve Bank of India to draw its attention towards non-cooperation from banks in implementing government schemes and went on to suggest government should not deposit its funds with these banks.