The Supreme Court on Monday suspended Madras Supreme Court’s ruling ordering the Tamil Nadu government to waive loans from all drought-affected farmers.
The Madras Supreme Court had ordered the government of Tamil Nadu to waive all agricultural loans by becoming aware of its 23-day protest at Jantar Mantar in New Delhi.
The Madurai court of Madras Supreme Court had also ordered cooperative societies and banks to waive farmers’ loans and not recover their dues.
The government of Tamil Nadu, however, had filed a petition in the apex court against the order of the High Court of Madras.
The Supreme Court noted that the state’s financial situation was grim and that it was solely responsible for the debt burden in a year of drought in which farmers committed suicide.
The High Court also suggested that the Center present itself to provide financial assistance to Tamil Nadu during the difficult situation.
A division bank composed of judges S Nagamuthu and M V Muralidaran gave the order to waive lending, while allowing a petition from the National Farmers Association of South Indigenous River Interlinking.
