Amidst alleged move to initiate kurki proceedings against the farmers to recover dues, the Punjab State Cooperative Agriculture Development Bank (PADB) on Wednesday made it clear that there was “no such move or intention on the part of the Bank to sell the land of the farmers to recover its dues”.
PADB managing director HS Sidhu categorically denied the reports that the Bank intends to sell the land of 12,625 farmers in six districts under the Patiala division.
“Initiating legal action against the defaulters is the routine work of the Bank but merely initiating legal action does not mean that Bank will ultimately sell the land of farmers,” Sidhu clarified.
He said that the Bank primarily effects recovery by way of persuasion and never harasses a farmer in distress. “But there are many willful defaulters who in spite of various efforts and ample time being given to them, have not bothered to repay their loan installments even when they have the capacity to repay,” he said.
“It is evident from the fact that the Bank had an overdue amount of Rs 1363.87 crore towards 71,432 farmers as on February 1, 2018, and out of these, bank has effected recovery of Rs 194.74 crore from 16,469 farmers till June 30, 2018, and has not sold the land of even a single farmer,” he said.
Sidhu added that the legal recourse to effect recovery which is sale of land or arbitration proceedings under Section 63-C of Punjab State Cooperative Societies Act, 1961, which can mature into arrest warrants, is taken as a last measure which is taken to its logical end only against big and influential defaulters.