New Delhi sources have made a statement that Supreme Court on Monday put a stay on the Madras High Court order directing Tamilnadu government to waive loans of all drought hit farmers. Currently the Madras High Court had ordered the Tamilnadu government to waive off all agricultural loans taking cognizance of their 23 day protest at Jantar Mantar in New Delhi.
Sources have stated that the Madurai bench of the Madras High Court had also ordered cooperative societies and banks to waive off the loans of the farmers and not recover their dues. Meanwhile High Court 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.
Further the High Court also suggested that the Centre should come forward
to extend financial help to Tamilnadu during the difficult situation. It was
added that a division bench comprising Justices S Nagamuthu and M V Muralidaran
gave the order of waiving the loans while allowing a petition by the National
South Indian River Interlinking Agriculturists Association.
