The Madhya Pradesh High Court (MPHC) in a major relief to 159 farmers from Bhopal district termed the auction of their land by bank as illegal and returned their lands to them.
Bhopal Cooperative Central Bank Chairman Vijay Tiwari addressing media persons here on Thursday said, “In the year 2007 officers of Grameen Vikas Bank hand in gloves with officers of registrar office fraudulently auctioned farmers precious land worth `1600 in and around Bhopal at throwaway prices.
The farmers filed a petition against this in the MPHC that termed the auction as illegal and returned the land to the farmers.”Tiwari said that the bank provides loan under ‘long Time Plan’ for agriculture work including digging of well and tubewell besides purchasing of bull pair, buffalo, tractor and other things.
As per section 26 and 28 of the Madhya Pradesh Grameen Vikas Bank act the land of farmers is mortgaged against the loan and as per the act if the farmers fail to return the loan than the bank has the power to auction the mortgaged land for recovery of loan.
The farmers do not have any right of hearing under section 26 and 28. Bank officers took advantage of this and auctioned the precious land to some high profile people of the Bhopal city at throwaway prices, he added.
The MPHC in its order dated November 30, 2013 said that the subject auction by the officials of the bank was fraudulent and issued directives to the bank to initiate appropriate action against the erring officials. The bank should also take appropriate steps of refunding the principal amount along with interest to th e auction purchasers within six weeks of the court order. If the bank is of the view that the purchasers are also party to fraudulent auction deal than only the principal amount should be returned to purchasers.
Tiwari said the State Government had also ordered an inquiry into the matter while the petition was pending in the court. The inquiry found that the auctioning process was carried out illegally. A departmental inquiry was also initiated against them and criminal cases were registered, he added.
He claimed that several "high-profile" persons purchased the land during the auctioning process. He alleged that he was receiving threats from such people when he raised the matter.
Tiwari demanded that loans availed by ryots at that juncture should be borne by the Government besides ensuring that farm land are returned to its owners. He also sought protection for himself and his whole family from the Government.