Revenue recovery measures by financial institutions, invoking the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act on farmer loans, always deny justice to the debt-ridden farmers in the State, an ad hoc panel formed to look into the impact of the SARFAESI Act has said.
Speaking after collecting evidence from farmers and farmer organisations in Wayanad district here on Thursday, panel chairman S. Sharma, MLA, said the situation was quite grim as many farmers, including marginal farmers, in the State were becoming the victims of the Act.
Though the Act was enacted to adopt action against the business class to recover their loans, financial institutions were trapping the farmers in the country by misusing the loopholes in the Act, he said.
Many a time, financial institutions were using family photographs of the debt- ridden family prior to revenue recovery proceedings, Mr. Sharma said, adding that such an unlawful act was not suitable for a democratic society.
Legal action would be initiated against such officials of financial institutions, he said.
The panel would suggest to the government to prevent cooperative banks from recovering loans by invoking the Act, he said.
By August-end
The panel had restrictions to intervene in an Act passed by Parliament but the financial and social aspects of the Act would be included in the panel’s report, Mr. Sharma said, adding that they would submit the report to the government by the end of August. Leaders of the farmer organisations urged quick intervention by the government in the issue.
Members of the panel, including Thiruvanchoor Radhakrishnan, E.S. Bijimol, C.K. Saseendran, M. Ummer, MLAs, and District Collector A.R. Ajayakumar attended the sitting.