An Appeal To Election Commissioner

Chief Election Commissioner,
Govt of India
New Delhi

Sir,

Farm Loan waiver:

We have to invite your kind attention on the subject cited above:

1. Political Parties resort to many promises in their manifestos to influence the voters in their favour. Among them, loan waiver to Farmers is one, which according to us, is to give conditional bribe if Party concerned voted to power.

2. According to extant Rule, giving anything in cash or kind in exchange of vote, it is wrong and illegal. If someone is caught distributing money or materials to voters, he is dealt according to extant law. Making a promise to farmers to waive their loans and making an appeal to vote on this ground is just promising a bribe to voters at future date on coming to power.

3. You are aware that countless poor & economically deprived people are granted loans by Banks under different poverty alleviation programs. They didn't have any assets as well. If they fail to repay Banks' loans, Banks issue Recovery Certificates and dues are collected by govt authorities as Revenue. But, none of the Parties or Government look to their plights and waive any loan. Since farming community, largest in number, holds might to change election equation, they are favoured by loan waivers. Farmers have assets, whereas urban poor borrowers have nothing. Thousands die or flee, but it makes no news. However, a farmer dying natural death, with a bank loan, is branded as suicide with louder attention in media and political sector.

4. Holding loan melas initially politicised Bank loaning. Loan quality & appraisal was hugely compromised under dictate of Rule. It created unscrupulous elements in small loan categories. Similarly, loan recoveries were hit by the loan waiver tendencies introduced by political class. Even genuine borrowers, capable of repaying loan now don't make repayment in anticipation of waiver.

5. Under Rules once any general borrower is defaulter and some waiver is given under One Time Settlement (OTS) even, he is blacklisted from further borrowings. CIBIL is spoiled. If farmers loans are waived because of default, why are they not blacklisted & barred from further loaning? After waiver, bigger amounts are taken as loan and not repaid. It is done deliberately.

6. Under KCC farmers are given liberty to draw money without any question from Banks with regard to purpose. Lion share of loans goes to serve domestic needs. A very less percentage is used in farming. We don't think, tax payers monies have any such purpose to be made available to meet consumption side of farmers.

Sirs,

EC must take it seriously and ban any such 'offer' to influence voters. It is in very clear and candid term indirect bribing farmers. Loans are not distributed by govt. It is done by banks on commercial considerations. You may be aware that farming community enjoys around 18% of total bank credit. Loan waiver on govt part simply damages the credit culture and recovery processes. It is ruinous and must be banned.

We, therefore, request your goodselves to please look into it and ban it. This disease must come to end.

Regards,

(J. N. Shukla)
Secretary
Look Sew Sansthan
B-26, Govindpur
Prayagraj (UP)
28.12.2018