In a major relief to the farmers in Maharashtra who have suffered heavy losses due to the unprecedented hailstorms and unseasonal rains in recent weeks, the Bombay High Court today asked the banks not to take coercive steps to recover the cash crop loans.
"Banks are directed not to take coercive steps for recovery of loans borrowed by the farmers (for cash crops)," said the division bench headed by Chief Justice Mohit Shah in response to a public interest litigation.
It also directed that the if the electricity connections for agricultural purposes have been cut due to non-payment of bill, they should be restored forthwith.
Petitioners Gorakh Gadke and Vithalrao Pawar, both farmers, have sought a financial aid of Rs 20,000 crore for the hailstorm-hit farmers.
The government lawyer informed the court that Rs 250 crore would be released today as a part of the relief package, while another Rs 600 crore would be released after two days.
The High Court asked the government to file an affidavit by March 27, stating the steps taken to provide relief.
As the government lawyer stated that some farmers had insured their crops, the High Court said it would consider making insurance companies respondents at the next hearing on March 28.
The government, two days ago, had declared a relief package of Rs 4,000 crore.
According to the petition, crops on over 17 lakh hectares of land are affected by the natural calamity. Rice, jowar, wheat, vegetables, onion, sugarcane, corn, maize, groundnuts, and plantations of banana, pomegranate, grapes, orange, papaya, mango and sweet lime are heavily damaged.
The PIL puts the loss at up to Rs 42,000 crore.
