Shinde warns lenders of criminal cases for hounding drought-hit farmers

Deputy Chief Minister Eknath Shinde on Tuesday, October 27, cautioned lenders of every kind against troubling drought-stricken farmers over repayment of loans, saying the state would act firmly against any such pressure. He spoke to reporters in Mumbai after a Cabinet meeting.

Drought has gripped Maharashtra this season. With no rain, water scarcity is already being felt, crops have failed and farmers who were deep in debt have also faced heavy pressure to pay up.

Shinde said the warning covers microfinance institutions, private moneylenders, non-banking financial companies and banks alike. Citing a recent episode of forceful recovery in Nanded, he said mental harassment or coercion of farmers would not be tolerated. Recovery agents who threaten farmers or try to confine them in an office would face stringent criminal cases, he added.

The government has issued the necessary instructions after talks with the Reserve Bank of India, commercial banks and financial institutions, Shinde said. Farmers should not panic if agents trouble them and should approach government officials at once. "We will not let the farmers' Diwali turn dark. The government is behind the farmers troubled by drought. The state government will send a proposal to the Centre on October 31. Microfinance companies must not recover loans by force. Strict action will be taken against companies that hound farmers for loan recovery. Whether it is a moneylender or a finance company, no one will be spared," he said.

On relief, Shinde said about 1.5 crore farmers in the drought-hit parts of the state would gain from the various schemes. The Rs 5,000 aid announced ahead of Diwali would give immediate financial support, and further grants and concessions would follow.

Local administrations have been told to plan for drinking water, tanker supply and fodder for cattle, with drinking water to get priority. Work is on to encourage fodder cultivation on the silt-rich fringes of dams, backed by a guaranteed price (hamibhav) and financial incentives.

The deputy chief minister also turned to politics, objecting to remarks made by Congress president Mallikarjun Kharge about Prime Minister Narendra Modi. He called such language for the Prime Minister reprehensible and demanded action against Kharge. "Expel Kharge from the party. This is not Nepal or Bangladesh, this is a new India. We object to Kharge's statement on Modi. Modi is someone who unites the country, while his opponents are those who break it," Shinde said.

He alleged the opposition was uneasy because the country was advancing rapidly under Modi, and claimed the Prime Minister was working to bring the nation together while some people dreamt of dividing it. Farmers across the state are now waiting to see when these assurances turn into real help on the ground.