On Monday, the Supreme Court put a stay on the Madras High Court order that directs the State Government to waive farm loans in the state. This decision came much after the farmers protest at Jantar Mantar in New Delhi in April for farm loan waiver.
The bench headed by Justice M. B. Lokur after a brief hearing stayed the high court order. They issued notices to the National South Indian River Interlinking Agriculturist Association that had asked details about the debt waiver.
This decision of the apex court came just days after the TN state government challenged HC’s decision in SC. The Madras HC said that the farm loan should not be limited only to small farmers, those with less than five acres, and should be applicable to all the farmers. The HC order also restrained cooperative societies and banks from recovering the pending loans.
The division bench of HC observing the financial situation said that the “Centre must come forward to extend financial help to Tamil Nadu during this difficult situation.”
In the plea, the Tamil Nadu government argued that the waiver scheme was only meant to benefit small and marginal farmers with land below five acres. They also said that the High Court order is an interference in the economic policy of the government.
