Saturday, July 12, 2014

Agri loan waiver: 6,823 ineligible beneficiaries detected




Press Trust of India  |  New Delhi  
 Last Updated at 17:38 IST

As many as 6,823 ineligible beneficiaries were detected in the 2008-09 agriculture debt waiver scheme and a whopping Rs 627 crore have been recovered from them besides action being initiated against 5,411 bank officials, government told the  today. 

Replying to questions, Finance Minister  said the scheme had benefited 3.73 crore farmers to the extent of Rs 52,259.86 crore. 

Agricultural Debt Waiver and Debt Relief Scheme (ADWDRS) was announced in the 2008-09 Union Budget to give relief to farmers against the backdrop of drought. 

A performance audit of the scheme done by the Comptroller & Auditor General (CAG) showed various errors of inclusion and exclusion at the beneficiary level. The audit was done from April 2011 to March 2012. 

Following the CAG findings, the government in January 2013 had directed all institutions to take immediate corrective and re-verify all the claims under the scheme. 

With regard to alleged irregularities, 80,299 cases were looked into and in about 6,823 cases benefits of the scheme went to ineligible beneficiaries, Jaitley said. 

Rs 627 crore has been recovered from ineligible beneficiaries so far, he said. 

Jaitley informed the House that 5,411 officials from various banks have been brought to book for irregularities in implementing the scheme and 22 FIRs registered. 

"All direct agricultural loans disbursed to farmers between March 31, 1997 and March 31, 2007, overdue as on December 31, 2007, which remained unpaid until February 29, 2008 were covered under the scheme," he said. 

Reserve  (RBI) and National Bank for Agriculture & Rural Development (NABARD) were the nodal agencies for the scheme. 

They had issued "directions to the lending institutions on January 1, 2013 and January 14, 2013, respectively to examine the cases of any irregularities and take corrective steps, including recovery of such amounts from ineligible beneficiaries, recovery of any excess payment and fixing responsibility of the bank staff in appropriate cases," he said.

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