KARNATAKA HC- CRITICIZED KARNATAKA GOVERNMENT'S POLICY TO LIMIT THE GRANT OF FINANCIAL AID ONLY TO FAMILIES OF FARMERS WHO ENDED THEIR LIVES AFTER BORROWING FROM THE BANK

5th March

The Karnataka High Court sharply criticized Karnataka Government’s policy to limit the grant of financial aid of Rs 5 lakh only to families of farmers who had ended their life after borrowing from the banks or financial institutions.

The Court directed the State Chief Secretary to make the government's stand clear on why compensation is only payable to one category of families who have availed money from banks and not extended to families who borrowed money from private money lenders? The court issued this direction after noticing from a report submitted by the Karnataka Government showing compensation paid to families of farmers who availed loans from banks in Shahpur Taluk of Yadgir District. The report also mentioned that 125 farmers committed suicide between 2016 to 2020, out of which 20 are not eligible as they borrowed money from private moneylenders.

The Court further held that the policy seems to be discriminatory and said the farmer commits suicide because he is heavily indebted; he cannot repay the loan and has no option other than suicide. What is the difference between a farmer who borrows money from the bank, commits suicide; and another class of farmers who borrow money from a moneylender and commit suicide?

Author: Papiha Ghoshal