Loan fraud in MPAgri dept writes to cooperative to take action against fraud

Alarmed by crop loan fraud committed in primary agriculture cooperative societies (PACS) and cooperative banks in Madhya Pradesh agriculture department has written to the cooperative department to look into all such cases and take legal action against the guilty.

Several cases of loan fraud came to light after the state government initiated the process to waive loans taken by farmers, up to ₹2 lakh per head.

On Wednesday a farmer in Bundelkhand region died of cardiac arrest after he came to know there was a huge loan in his name to the tune of ₹5.43 lakh despite the fact he had not taken any loan as claimed younger brother of the deceased.

The letter dated January 24, 2019 written by Farmers Welfare and Agriculture Department principal secretary Rajesh Rajora to principal secretary, Cooperative Department states, “The list of farmers with regular outstanding or time barred (Kalateet) loan is being pasted at village panchayats….There are statements from farmers who say they have not taken any loan or they have taken loan less than the amount mentioned in the list. This suggests that there have been attempts on embezzlement in certain primary agriculture cooperative societies in the name of crop loan.”

The officer has said such cases amounted to serious crimes and it is expected to take stringent action (against the guilty) under Cooperative Act and also Indian Penal Code.

The principal secretary has expected that after getting details of such loan frauds there should be a procedure to inquire into such cases and a time frame should be decided to take appropriate legal action.

Official sources said a list of such farmers who have not taken loans or taken less amount of loan than mentioned in the list, will be prepared after February 5, the last date for submission of forms by farmers to avail themselves of loan waiver facility.

State BJP spokesperson Rajneesh Agrawal said, “This is state government’s prerogative to institute an inquiry into such cases but Congress government is hardly serious about any inquiry. It only wants to target BJP in the name of inquiry.”