Banks may take legal route to end agriculture loan waivers

by confuzzled dude Mon Jun 09, 2014 9:10 pm

"A number of banks plan to approach the courts against the Andhra Pradesh government's waiver of farm loans aggregating Rs 54,000 crore, the biggest by a state. The issue is likely to figure prominently in a meeting on Monday with Finance Minister Arun Jaitley. "

"If banks do exercise the legal option, this will be the first time that banks, nearly two-thirds owned by the government, will be taking on the state itself unlike in the past when they meekly surrendered to the government's diktat. Banks could either approach the Andhra Pradesh High Court or the Supreme Court directly."

http://economictimes.indiatimes.com/articleshow/36318995.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

by Merlot Daruwala Mon Jun 09, 2014 11:50 pm

I hope they do. Loan waivers are the most irresponsible acts any government can do. It completely destroys the credit culture and encourages defaults. Indian PSBs are still reeling from the damage caused by the UPA's loan waiver ten years ago.

by truthbetold Tue Jun 10, 2014 6:01 am

The courts should also ban electricity bill waivers. The ysr movement before 2004 election lead to non payment and pilferage from grid. Now the entire nation suffers from the malice.

by confuzzled dude Tue Jun 10, 2014 6:24 am

No wonder CBN got all defensive and threw a tantrum during media interview. So far opposition has done a good job of keeping him in check.

by confuzzled dude Sun Jun 29, 2014 9:39 pm

Apparently, Modiji is not willing to give green signal to these loan waivers; Uncertainty is troubling to many farmers as they may not be able to start with kharif crop without a final decision on this. After Monday farmers will have to pay interest on the loans @ 11%, so they all are confused and not sure of the consequences.

by Marathadi-Saamiyaar Sun Jun 29, 2014 9:56 pm

confuzzled dude wrote:Apparently, Modiji is not willing to give green signal to these loan waivers; Uncertainty is troubling to many farmers as they may not be able to start with kharif crop without a final decision on this. After Monday farmers will have to pay interest on the loans @ 11%, so they all are confused and not sure of the consequences.

Any program, waiver should be considered "case by case" (bribe beware).

by rawemotions Mon Jun 30, 2014 4:15 pm

confuzzled dude wrote:No wonder CBN got all defensive and threw a tantrum during media interview. So far opposition has done a good job of keeping him in check.

Strange way to attribute competency to the undeserving.
Since when is encouraging Fiscal Profligacy considered a good thing?

http://www.newindianexpress.com/states/andhra_pradesh/YSRCP-Wants-AP-Govt-to-Waive-Farm-Loans/2014/06/28/article2305029.ece

by truthbetold Mon Jun 30, 2014 4:35 pm

confuzzled dude wrote:Apparently, Modiji is not willing to give green signal to these loan waivers; Uncertainty is troubling to many farmers as they may not be able to start with kharif crop without a final decision on this. After Monday farmers will have to pay interest on the loans @ 11%, so they all are confused and not sure of the consequences.

how did you know what modii is thinking? what are your sources? can you provide links?

by Vakavaka Pakapaka Mon Jun 30, 2014 4:41 pm

It is good that banks are showing some courage to fight the YSR-type giveaways by CBN.

by rawemotions Mon Jun 30, 2014 7:00 pm

Vakavaka Pakapaka wrote:It is good that banks are showing some courage to fight the YSR-type giveaways by CBN.

The proper way to handle these loans of which some of them might be NPA's, is to move them to a SPV, that is owned by the government, off the books of the banks. All said and done, a 11% interest is debilitating, so a SPV can then look at interest rate cuts or other methods that can aid recovery of loans, with schemes to help only the needy, (Drought infested areas) etc... In the long run, I think it is high time government look at interest rate rationalization for loans in agricultural sector.

by confuzzled dude Mon Jun 30, 2014 8:15 pm

Vakavaka Pakapaka wrote:It is good that banks are showing some courage to fight the YSR-type giveaways by CBN.

When did they become YSR-type giveaways, wonder who started Rs.2 per KG rice scheme.

by confuzzled dude Mon Jun 30, 2014 8:17 pm

truthbetold wrote:
confuzzled dude wrote:Apparently, Modiji is not willing to give green signal to these loan waivers; Uncertainty is troubling to many farmers as they may not be able to start with kharif crop without a final decision on this. After Monday farmers will have to pay interest on the loans @ 11%, so they all are confused and not sure of the consequences.
how did you know what modii is thinking? what are your sources? can you provide links?

This was discussed on TV9.

by confuzzled dude Mon Jun 30, 2014 8:19 pm

"Hyderabad: The Hyderabad High Court on Monday made it clear that neither the AP nor the Telangana state governments had the power to waive the loans that farmers had borrowed from banks."

http://www.deccanchronicle.com/140701/nation-current-affairs/article/andhra-pradesh-high-court-states-can%E2%80%99t-waive-farmer-loans

by confuzzled dude Mon Jun 30, 2014 9:55 pm

"At the first AP State Level Bankers Committee (SLBC) meeting here on Monday, Naidu told the worried bankers that the expert committee appointed by his government was examining the issue and holding parleys with the RBI, Centre and top bankers of the country. He also tried to assure bankers that there would be clarity on the matter within a month's time and requested them not to 'exert pressure' on farmers for loan repayments. "

http://timesofindia.indiatimes.com/city/hyderabad/Jittery-banks-want-clarity-on-AP-farm-loan-waiver-scheme/articleshow/37545187.cms

-> Asking for another month's time pretty much gives it away that Government is unsure of waiving loans.

by confuzzled dude Mon Jun 30, 2014 10:01 pm

confuzzled dude wrote:
truthbetold wrote:
confuzzled dude wrote:Apparently, Modiji is not willing to give green signal to these loan waivers; Uncertainty is troubling to many farmers as they may not be able to start with kharif crop without a final decision on this. After Monday farmers will have to pay interest on the loans @ 11%, so they all are confused and not sure of the consequences.
how did you know what modii is thinking? what are your sources? can you provide links?
This was discussed on TV9.

BTW, during the discussion today TDP MLA began attacking media, opposition and everyone else for bringing up this topic and questioning technical feasibility of rescheduling existing loans at this point in time. BTW, it was BJP representative who brought up these issues with technicalities.

by Vakavaka Pakapaka Mon Jun 30, 2014 10:09 pm

confuzzled dude wrote:
Vakavaka Pakapaka wrote:It is good that banks are showing some courage to fight the YSR-type giveaways by CBN.
When did they become YSR-type giveaways, wonder who started Rs.2 per KG rice scheme.

Ok, they are YSR-NTR-MGR-type giveaways

by confuzzled dude Mon Jun 30, 2014 10:39 pm

Vakavaka Pakapaka wrote:
confuzzled dude wrote:
Vakavaka Pakapaka wrote:It is good that banks are showing some courage to fight the YSR-type giveaways by CBN.
When did they become YSR-type giveaways, wonder who started Rs.2 per KG rice scheme.
Ok, they are YSR-NTR-MGR-type giveaways

Right now it is CBN's giveaway which appears to be eluding him with every passing day.

by confuzzled dude Sat Jul 12, 2014 3:53 pm

"Hyderabad: The Andhra Pradesh finance department made it clear to the government that it will not be possible to provide funds for waiver of farm loans within the budget. The department has said that the government has to mobilise the funds outside the budget."

ModiRaj is clearly screwing CBN & Telugu farmers. At this rate, it wont take that long for CBN to lose it & begin accusing Modi like he did in '02.

Revenue officials said the government will come to an agreement with farmers and private persons in the important areas of the state to acquire land from them. If the government acquires 1000 acres of land and readies it with all adequate infrastructure, it will hand-over 40% of the land to the owners and remaining 60% land will be with the government.

Going by Hyd fiasco, this probably is the best way to enrich middlemen a.k.a as friends of CBN.

http://www.deccanchronicle.com/140712/nation-current-affairs/article/andhra-pradesh-budget-not-enough-farm-loan-waiver

by confuzzled dude Mon Jul 21, 2014 12:50 pm

"It is said that government is planning to waive 1.5 Lakhs Crop loans and 50000 of Gold Loans to each family. The waiver is planned in such a way 96% of the families in the state are benefited. Government has asked the bankers to give details of all the borrowers and is in the process of eliminating duplicates and fraudsters from the list. It is said that Kotayya committee has got a special software to take up this process."

http://www.mirchi9.com/movienews/cbn-plans-loan-waiver-to-benefit-96-families/

by confuzzled dude Sun Aug 10, 2014 9:26 pm

"HYDERABAD: Giving a rude shock to the governments of Andhra Pradesh and Telangana, which had been eagerly waiting for a positive response from the Reserve Bank of India on rescheduling of all crop loans, the banking regulator has made it clear that only four districts in AP (Srikakulam, Vizianagaram, Krishna and Nellore) and three in Telangana (Adilabad, Medak and Ranga Reddy) are eligible for availing the facility.

In a letter, sent to the two governments on Friday, the banking regulator further made it clear that the facility would not be applicable to gold loans. It also categorically told the two governments that the rescheduling facility was applicable to the loans taken in 2013 and that the maximum limit is Rs 1 lakh."

http://www.newindianexpress.com/states/telangana/Loan-Reschedule-Only-in-4-AP-3-Telangana-Districts/2014/08/10/article2372636.ece

by confuzzled dude Tue Nov 04, 2014 9:37 am

85 per cent Andhra Pradesh farmers ineligible for loan waiver

The 1.05 crore farmers’ accounts came down to 15 lakh after family members were grouped. The loan waiver, which would have cost Rs 87,612 crore, came down to Rs 20,000 crore.

http://www.deccanchronicle.com/141020/nation-current-affairs/article/85-andhra-pradesh-farmers-ineligible-loan-waiver

-> Scrupulous Babu strikes again Razz

backstabs farmers in his usual fashion, after winning their votes by dangling loan carrot in front of them.

by truthbetold Tue Nov 04, 2014 9:49 am

confuzzled dude wrote:
85 per cent Andhra Pradesh farmers ineligible for loan waiver

The 1.05 crore farmers’ accounts came down to 15 lakh after family members were grouped. The loan waiver, which would have cost Rs 87,612 crore, came down to Rs 20,000 crore.
http://www.deccanchronicle.com/141020/nation-current-affairs/article/85-andhra-pradesh-farmers-ineligible-loan-waiver

-> Scrupulous Babu strikes again backstabs farmers in his usual fashion, after winning their votes by dangling loan carrot in front of them.

If your numbers are right, it is great news. If it costs CBN his next election, so be it. The state is better off.

by confuzzled dude Tue Nov 04, 2014 10:35 am

truthbetold wrote:
confuzzled dude wrote:
85 per cent Andhra Pradesh farmers ineligible for loan waiver

The 1.05 crore farmers’ accounts came down to 15 lakh after family members were grouped. The loan waiver, which would have cost Rs 87,612 crore, came down to Rs 20,000 crore.
http://www.deccanchronicle.com/141020/nation-current-affairs/article/85-andhra-pradesh-farmers-ineligible-loan-waiver

-> Scrupulous Babu strikes again backstabs farmers in his usual fashion, after winning their votes by dangling loan carrot in front of them.
If your numbers are right, it is great news. If it costs CBN his next election, so be it. The state is better off.

State would've been in much better shape, had he not promised loans waivers to begin with/to win the election.

by truthbetold Tue Nov 04, 2014 11:57 am

confuzzled dude wrote:
truthbetold wrote:
confuzzled dude wrote:
85 per cent Andhra Pradesh farmers ineligible for loan waiver

The 1.05 crore farmers’ accounts came down to 15 lakh after family members were grouped. The loan waiver, which would have cost Rs 87,612 crore, came down to Rs 20,000 crore.
http://www.deccanchronicle.com/141020/nation-current-affairs/article/85-andhra-pradesh-farmers-ineligible-loan-waiver

-> Scrupulous Babu strikes again backstabs farmers in his usual fashion, after winning their votes by dangling loan carrot in front of them.
If your numbers are right, it is great news. If it costs CBN his next election, so be it. The state is better off.
State would've been in much better shape, had he not promised loans waivers to begin with/to win the election.

State would have been better off if YSR and Jagan did not rip off billions of people's money. But people have to deal with available options. We can only wish politicians learn their lessons for future.

by confuzzled dude Tue Nov 04, 2014 12:33 pm

truthbetold wrote:
confuzzled dude wrote:
truthbetold wrote:
confuzzled dude wrote:
85 per cent Andhra Pradesh farmers ineligible for loan waiver

The 1.05 crore farmers’ accounts came down to 15 lakh after family members were grouped. The loan waiver, which would have cost Rs 87,612 crore, came down to Rs 20,000 crore.
http://www.deccanchronicle.com/141020/nation-current-affairs/article/85-andhra-pradesh-farmers-ineligible-loan-waiver

-> Scrupulous Babu strikes again backstabs farmers in his usual fashion, after winning their votes by dangling loan carrot in front of them.
If your numbers are right, it is great news. If it costs CBN his next election, so be it. The state is better off.
State would've been in much better shape, had he not promised loans waivers to begin with/to win the election.
State would have been better off if YSR and Jagan did not rip off billions of people's money. But people have to deal with available options. We can only wish politicians learn their lessons for future.

Hahaha @ available options, if What you say about YSR & Jagan is true, Modiji should be able to bring every paisa back, I've full confidence him. But the backstabbing by CBN is a different matter altogether.

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