Harvest loan waiver, agricultural jewelry loans suspended

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In view of several irregularities noted in the implementation of the agricultural loan exemption and agricultural jewelry loan programs announced by the previous AIADMK government, the DMK government said on Friday that detailed investigations would be carried out on these programs before they are not implemented.

Presenting the revised budget for 2021-2022, Minister of Finance Palanivel Thiaga Rajan said: “Many irregularities were noted in the implementation of the agricultural loan exemption program. In some districts, a surprisingly large amount of loans was disbursed just before the program was announced. In some cases, companies kept loan collections and disbursed them again, which equates to a permanent renewal of the portfolio. ”

There were violations at the level of individual beneficiaries, including the disbursement of loans without crop details in accordance with the adangal and loan sanction beyond the cultivated area or beyond the approved financing scale. At the level of cooperative societies, some societies have disbursed loans without obtaining sanctions or without releasing cash credit from district cooperative credit banks.

Quality issues

In the case of agricultural jewelry loans, it was found that the jewelry was not valued correctly and was of low weight or of poor quality. He said: “To cancel such loans is to reward the wrongdoers. Therefore, a detailed investigation is required before the program is fully implemented. ”

A preliminary assessment has shown that the situation regarding jewelry loans is similar. “Therefore, a detailed appraisal of disbursed jewelry loans is required before the waiver is taken, so that eligible recipients benefit and wrongdoers are not rewarded,” Rajan said.

The previous AIADMK government announced the agricultural loan exemption program. The Minister of Finance said: “This government has left us with the heavy legacy of covering the cost of the program, estimated at 12,110.74 crore. In the revised budget estimates 2021-2022, a provision of 4,803.95 crore has been made for the agricultural loan exemption program.

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