The Maharashtra government today told the state Legislative Assembly that it was difficult to revive the 27 defunct land development banks in the state.
State Cooperation Minister Subhash Deshmukh, while replying to a debate on the issue raised through a calling attention notice, said the total value of the bank properties was worth Rs 2,000.
He also said the farm loan worth Rs 950 crore has not been paid.
He clarified that land of farmers, who had availed this loan, will not be auctioned. Notices of auction of land of those farmers will be withdrawn.
The minister said arrears of salaries worth Rs 269 crore of the employees of these banks will be disbursed within four months of the employees unions withdrawing their pleas in the Bombay High Court (in Mumbai and Aurangabad).
"The 27 land development banks in the state went into liquidation in 2013. It is difficult to revive them," the minister said.
"The market worth of the bank properties is Rs 2,000 crore and the salaries of employees can be paid after selling off 15 per cent of the properties," Deshmukh said adding, "This can be done only after the employees unions withdraw their petitions from the court."
For the farm loan arrears, a one-time settlement (OTS) scheme will be announced soon, in which the state government will bear the burden of Rs 730 crore and the rest will be borne by the farmers, Deshmukh said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)