A farmer from Agra has won a consumer court case against the State Bank of India (SBI) after he was denied the benefits of the Uttar Pradesh government’s agricultural loan waiver scheme. The District Consumer Disputes Redressal Commission-I directed the bank to pay the farmer the loan waiver amount along with interest and compensation.
Consumer Commission Orders SBI to Pay Compensation
The Commission, headed by President Sarvesh Kumar and Member Rajiv Singh, ordered the Branch Manager of SBI, Kirawali, to pay the farmer ₹81,303, which was the loan waiver amount. The bank was also directed to pay 6% annual interest on the amount, along with ₹15,000 as compensation for mental agony and litigation expenses.
Farmer Claimed Bank Declared His Account Invalid
The farmer, Ghanshyam, a resident of Abhuapura village in Kirawali, filed the complaint on February 19, 2021. He said that he had taken an agricultural loan from SBI on July 18, 2014, by mortgaging land owned jointly by him and his brother.
Loan Waiver Benefit Was Denied
After the Uttar Pradesh government launched the Agricultural Loan Waiver Scheme on April 11, 2017, farmers with land up to two hectares and loans up to ₹1 lakh became eligible for loan waiver benefits. Ghanshyam visited the bank on April 14, 2017, to claim the benefit. Bank officials first asked him to return after 15 days. Later, they informed him that he was eligible for the scheme and that his name had been recommended to the committee headed by the District Magistrate.
The Uttar Pradesh government’s agricultural loan waiver scheme, known as the Krishi Rin Mochan Yojana, waived up to 1500 (₹1 lakh) of outstanding crop loans for small and marginal farmers. It primarily benefits farmers whose loans were handed out by recognized banks on or before March 31, 2016.
Name Removed From Scheme
However, on October 18, 2017, Ghanshyam found that his name was not included in the list of beneficiaries. He alleged that the bank had marked his loan account as invalid, due to which he was denied the benefit of the loan waiver scheme.
Family Suffered Due to the Incident
According to the complaint, Ghanshyam’s mother, Parvati Devi, was deeply shocked after learning that he had been denied the loan waiver benefit. She later passed away while undergoing treatment. The farmer approached the consumer commission seeking justice, and the commission ruled in his favour.
