CAG finds irregularities in UPA's farm debt waiver scheme

34% of audited accounts were not issued debt waiver certificates

In a fresh blow to the United Progressive Alliance (UPA), Comptroller and Auditor General of India (CAG) has opened the lid on yet another scam in the farm loan waiver scheme which was UPA’s ticket to power in 2009.

Senior CAG official confirmed the reports detailing how UPA could not deliver on the loan waiver scheme. CAG conducted an audit of over 90,000 farmers’ accounts between April 2011 to March 2012. Of the audited accounts, over 34% were not issued debt waiver certificates, over 8.6% were not eligible but still got the waiver and around 13% were disqualified by banks despite being eligible.  

CAG is expected to table this report in the Budget Session of the parliament next month.

UPA had announced a Rs 50,000 crore farm loan waiver scheme  and Rs 10,000 crore one time settlement relief in February 2008. The Agriculture Debt Waiver and Debt Relief Scheme {ADVVDRS}, 2008 announced by the Government of India was estimated to benefit 3.88 crore farmers with either debt relief or debt waiver.

The amount was later raised to around Rs 60,416 crore for farm debt waiver. CAG has audited only a small sample size of the total farmer accounts that were extended the benefit.

The scheme was to be implemented by the Scheduled Commercial Banks, Regional Rural Banks, Cooperative Credit Institutions (including Urban Cooperative Banks) and Local Area Banks by 30 June 2008. The part of the scheme for debt waiver to the eligible small and marginal farmers was implemented by the due date.