Farmers across Karnataka were dumbfounded after money distributed to nearly 14,000 farmers, under state loan waivers scheme, was taken back from their accounts, during the last week of May, reported The News Minute.

The picture became clear on Tuesday when the government, citing ineligible beneficiaries, announced that the money was taken back because the beneficiaries were ineligible for the loan waivers scheme.

After a sample survey by the Audit Department found that the money was transferred to ineligible beneficiaries, the state government asked the banks to return Rs 59 crore deposited in the accounts of 13,988 farmers, under the scheme. So Far, the government has released Rs 8,759 crore for 18.7 lakh beneficiaries under the loan waivers scheme.

“The present situation could be because of mischief, misunderstanding or a mistake. However, after the audit, we had to ask the banks to return the money,” a senior bank official told The Hindu.

However, TNM reported that sources in Co-Operation Department said that the banks took steps on the direction of state government. “Every transaction for loan waiver is done only after it is cleared by the respective taluk committees. This could not have happened without their knowledge,” said an official Co-Operation Department. 

Political Course

BJP State president B.S. Yeddyurappa accused the government of using loan waivers scheme for wooing voters during the elections. “Several thousands of accounts in Yadgir had received money before the elections, but have been taken back after elections. The Chief Minister has to apologise,” Yeddyurappa told presspersons.

However, clarifying that it was not related to elections, Chief Minister H.D. Kumaraswamy said, “Confusion has been caused due to the failure of the banks to segregate farmers’ loans. We have sought an explanation from the bank.” 

Also Read: Punjab: Why Short-Term Measures Like Farm Loan Waiver Will Not Solve Farmers’ Distress