Date:16/03/2007 URL: http://www.thehindu.com/2007/03/16/stories/2007031609840500.htm
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Andhra Pradesh - Others

Loan recovery: banks warned

Staff Reporter

`Do not coerce kin of dead farmers to repay loans'


  • Banks told to follow State orders
  • "Bankers cannot `adjust' cheques"

    KADAPA: District Collector M.T. Krishna Babu directed revenue divisional officers on Wednesday to ask bank managers not to serve notices or pressurise kin of farmers who committed suicide, to recover loan dues owed by the deceased.

    Under the Government's relief and rehabilitation package for farmers who ended lives, bankers would have to be content with the proportionate sum allotted towards one-time settlement, irrespective of the quantum of loan due to them, he told a meeting with officials here. "Bankers cannot adjust cheques issued to the widows/kin of deceased farmers towards "outstandings" under any circumstances, he said categorically.

    Ex gratia

    When Santhamma, widow of Rallapalle Jayappa Naidu, drew his attention to officials of Syndicate Bank Devapatla branch adjusting the ex gratia cheque of Rs. 50,000 given to her, towards her husband's outstanding crop loan, the Collector ordered that the bank manager re-credit the amount in Santhamma's account within 48 hours.

    He instructed Pulivendula DSP K. Venkatarami Reddy to take a complaint from the woman and register a criminal case against the bank manager, if he failed to do so. Sambepalle MRO told the Collector that the bank branch was already paid Rs. 18,963 towards proportionate share in one-time settlement of dues. Some MROS informed Mr. Krishna Babu that Syndicate Bank, Pragathi Grameena Bank and District Cooperative Central Bank were not accepting the proportionate payment and serving notices for recovery of loans taken by the deceased.

    Mr. Krishna Babu asked MROs to forward a list of bank branches which refused to accept the State Government orders.

    The Collector advised widows/ kin of farmers who ended lives to take up allied agricultural activities such as dairying and urged them not to re-invest in agriculture alone as mounting debts claimed their family head's life.

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