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Karnataka government to waive all farm loans in one go


Following reports of loan-gaffe, Chief Minister H. D. Kumaraswamy-led government has decided to waive all eligible farm loans taken from nationalised banks in one go.

On Wednesday, an order by the was issued after reports came to fore that money credited into of 13,988 farmers was withdrawn by banks after farmers were found ineligible for loans during an audit.

The news rattled that state government, with affected farmers alleging that the Kumaraswamy dispensation government had deposited money only to win votes and withdrew it after losing in the recently concluded Lok Sabha polls.

The Kumaraswamy-led JD(S) government, after coming to power in 2018 had announced partial farm loan amounting to Rupees 34000 cr in its inaugural budget session. The amount for each loan was limited to 2 lakhs which was to be paid initially in four instalments.

The new announcement means the government has to release about Rs 4,617 crore at one time to complete the process in commercial banks.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, June 13 2019. 13:35 IST