July 3, 2017
Govt wanted to waive Loans of only those Farmers who have Land holding upto Five Acres, but HC extended it to all.
On Monday, the Supreme Court stayed a Madras HC order directing the Tamil Nadu govt. to extend its scheme to waive crop loans to all the farmers, including those with land holdings of more than 5 acres.
Bench led by Justice Madan B. Lokur issued notice & stayed the HC order in a short hearing.
The govt. argued that the waiver scheme was only meant to benefit small & marginal farmers with land below 5 acres; these farmers had taken crop loans from co-operative banks/societies.
State argued that the 4th April 2017 order of the Madurai Bench of the HC is “an interference in the domain of the economic policy decision of the govt.”
Petition as an interim relief, asked the court to stay the HC order, which also imposed on the State a deadline of 3 months to comply with the order.
The special leave petition said that “Unless the impugned order is stayed, the petitioner (State) would be put to irreparable damages & loss.”
The loan waiver scheme was notified by the Cooperation, Food and Consumer Protection Department on May 23 and 25 of 2016. The loan waiver was part of the election manifesto of the AIADMK.
The High Court order was based on writ petitions filed seeking to extend the loan waiver to all the agriculturists & not only the small & marginal ones.
Source - PTI