In a significant order, the Madras High Court on Tuesday directed the Tamil Nadu Government to waive loans of all drought-hit farmers and restrained cooperative societies and banks from recovering their dues.
It noted that the State’s financial situation was grim and it was single handedly shouldering the debt burden in a drought year in which farmers were committing suicide and suggested that the Centre come forward to extend financial help to Tamil Nadu ‘during this difficult situation.’
A division Bench comprising Justices S Nagamuthu and MV Muralidaran gave the order of waiving the loans while allowing a petition by National South Indian River Interlinking Agriculturists Association.
The court, which had heard the petition in Madurai Bench, delivered its judgement on Tuesday at the principal seat here.