Madras HC order on farmer loans stayed by SC

New Delhi, July 3 (IANS): The Tamil Nadu Government was relieved when the Supreme Court on Monday stayed the operation of a Madras High Court order which directed the government to waive off loans of all farmers without considering their land holdings.

The bench of Justice Madan B. Lokur and Justice Deepak Gupta had stayed the High Court order on a plea by the Tamil Nadu government. The state government had moved the Supreme Court in May.

The Madras High Court had on April 4 ordered the Tamil Nadu government to waive off loans given to farmers by cooperative societies.

The government had earlier restricted the loan waive off to the farmers owning land up to five acres. However, the farmers filed a case at the Madras High Court to waive off loans irrespective of land holding.

The court issued notice to the respondent National South Indian River Interlinking Agriculturists Association.

The High Court order had come on a plea by the National South Indian River Interlinking Agriculturists Association which had moved the court through its President Ayyakannu.