Despite tight finances amid drought, HC asks Tamil Nadu to waive farm loans
By Team Legistify / 2017-04-05

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In a significant order, the Madras High Court on Tuesday directed the Tamil Nadu government to waive loans of all drought-hit farmers and restrained cooperative societies and banks from recovering their dues.

It noted that the state's financial situation was grim and it was single-handedly shouldering the debt burden in a drought year in which farmers were committing suicide and suggested that the Centre come forward to extend financial help to Tamil Nadu "during this difficult situation."

A division bench comprising Justices S Nagamuthu and M V Muralidaran gave the order of waiving the loans while allowing a petition by National South Indian River Interlinking Agriculturists Association.

"We are aware that the state's financial situation is grim. The Chief Secretary in her letter to the Advocate General also reiterated the same. The government is already single-handedly shouldering the burden of Rs 5,780 crore and it will be an additional burden to bear Rs 1,980.33 crore."

In this difficult situation, the central government cannot be a silent spectator and should come forward to extend help to the state government to share the burden, the court said.

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