New method for farmers to withdraw loans must be implemented only from November 1: Madras HC judge ananth venkadesh
BSE 39467.31 353.84(0.90%) NSE 11647.60 88.35(0.76%)
Home States Tamil Nadu
New method for farmers to withdraw loans must be implemented only from November 1: Madras HC
Disposing of the petition, the judge said that the petitioner is perfectly right in saying that the system can be implemented only after the stakeholders are given sufficient time to understand it.
Published: 29th August 2020 07:08 PM | Last Updated: 29th August 2020 07:08 PM | A+A A-
Madras High Court Madras High Court (File photo | EPS)By Siva SekaranExpress News Service
CHENNAI: The Madras High Court has directed the Registrar of Cooperative Societies in Kilpauk to implement the new system of withdrawing loans by members of co-operative societies — who are mainly farmers — from November 1.
Justice N Anand Venkatesh gave the direction on August 28, while disposing of a writ petition from P V Saravanan challenging the proceedings dated July 27 this year of the Co-operative Societies
Registrar, as per which the withdrawal of the loan amount by members of the societies has been structured in such a way that they will have to open a mirror account with the respective District Central Cooperative Banks and the loan can be withdrawn only through a Kisan Credit Card. This withdrawal will be done from an ATM.
The petitioner’s main grievance was that this system has been introduced all of a sudden and implemented immediately without giving time to farmers to prepare for the change in procedure for withdrawing the loan amount. Most of the farmers are not in a position to withdraw the loan amount right from July onwards, the petitioner pointed out.
Disposing of the petition, the judge said that the petitioner is perfectly right in saying that the system can be implemented only after the stakeholders are given sufficient time to understand it. Opening mirror accounts and operating ATM cards cannot be adopted overnight and it requires some time.
“After a careful consideration of the submissions made on either side and in order to maintain a balance to ensure that the new procedure is implemented and at the same time the stakeholders are also given some time, this court thought it fit to request the Registrar to implement the impugned July 27 order from November 1,” the judge said.
In the meantime, opening of mirror accounts and issuance of ATM cards can take place. “The current procedure adopted for disbursement of loan can continue till the new procedure is implemented from November 1,” the judge added.