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Why Farmers are protesting against Karnataka Gramin Bank in Mysuru?


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The Mysuru farmers’ association held a protest on Tuesday, expressing dissatisfaction with the reported auctioning of a farmer’s house despite the full repayment of his loan. According to the farmers, Doreswami obtained a ₹15 lakh loan in 2013 from the Krishnarajanagara branch of Karnataka Gramin Bank, using his house deed as collateral.

They asserted that despite Doreswami consistently making monthly payments covering both principal and interest, the bank authorities conducted an auction, selling his house to a single bidder. More than 50 farmers protested at the Karnataka Gramin Bank, accusing the institution of unlawfully seizing the property. Doreswami claimed to have repaid nearly ₹19 lakh to date.

Contrasting Claims: Bank authorities countered the farmers’ allegations, stating that the farmer initially borrowed ₹15 lakh from the K R Nagar branch in 2013 but began defaulting on payments after some time. Shankar Narayana, the bank’s regional manager, explained that legal proceedings were initiated to recover the payments. However, due to the impact of Covid in 2020-21, the process was temporarily halted and resumed in 2022 under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act.

Bank’s Perspective: Narayana emphasized that the outstanding amount to be recovered from the farmer is ₹44.5 lakh, and the bank is open to a one-time settlement. Despite the farmer approaching the debts recovery tribunal seeking a stay on the auction, the tribunal declined. The bank classified the loan under the mortgage category rather than agriculture, and the e-auction is still pending. The regional manager asserted that the customer’s cooperation is crucial for a resolution.

One Comment

  1. Before make crispy take bank statement and challenge it if it’s found that any problem then only shout…
    This type entertainment breaking our banking systems and entertaining the defaulters and discourage the prompt customers..

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