Opposition demands complete waiver of farm loans

New Delhi: Opposition parties in the Rajya Sabha, demanded the government to waive interest on loans obtained by farmers and individuals during the pandemic, citing a pause in insolvency proceedings against defaulting corporates.

Participating in a debate, K K Ragesh of CPM said Finance Minister Nirmala Sitharaman and other members have told the House that the Insolvency and Bankruptcy Code (Second Amendment) Bill has been brought to save businesses and corporates.

"Why is the same logic not applied in the case of farmers? Farmers are also bankrupt. Why is the government not taking any responsibility and any initiative in waiving the farmers' loans?" he asked. Ragesh suggested that the government could at least have considered to "waive the interest on farmers loans during the moratorium period".

DMK member P Wilson accused the government of siding with the corporates. "There is discrimination between the common man and the corporate. Why this discrimination? Is the government here for crony corporates?," asked Wilson. He demanded for a complete waiver of agriculture term loans.

Initiating the debate, Congress member Vivek Tankha said that the government should protect only those businesses which are affected by Covid-19 pandemic and not all defaulters.

He claimed that "Section 10-A in the Bill states that no application for initiation of the Corporate Insolvency Resolution Process (CIRP) shall be filed for any default, whether Covid-19 related or not, arising on or after March 25 for a period of six months or such period not exceeding one year form such date as may be notified."