Tiwari writes to PM, demands probe in Agri -Banking Scam - Asian Age

Tiwari writes to PM, demands probe in Agri -Banking Scam 

Asian Age-Dec 30, 2015 -

Prominent farm activist and president of Vasantrao Naik Sheti Swavalamban Mission (VNSSM), a state body, Kishor Tiwari has written a letter to Prime Minister Narendra Modi alleging irregularities in the disbursements made by the public sector and cooperative banks to farmers. Mr Tiwari has demanded that the CBI conduct an inquiry into the alleged scam.

Mr Tiwari in his letter has mentioned that the scam took place between 2005 to 2015. He has alleged that banks have adopted corrupt and fraudulent practices to show they have achieved their targets. “Fictitious Joint Liabilities Groups of farmers have been formed in collusion with some agro-process corporate/industries by forging documents. The amount of such disbursement has been pocketed directly by these so-called agro-process corporates/industries,” Mr Tiwari has stated.

As per the Reserve Bank of India guidelines, nationalised banks, domestic commercial banks and foreign banks have been given the specific target of lending 18 per cent of Adjusted Net Bank Credit (ANBC) or credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher.

“The banks, in a hurry to achieve the agro sector target, launched schemes to extend financial aid to farmers on the basis of co-lateral/mortgage of agricultural lands in the name of development thereof. But in reality no such amount has reached them for agro development. On the other hand, at the next moment, they utilised the said amount turning it into term fixed deposit receipts. In this way, a white collared fraud is committed by the banks,” Mr Tiwari has said.

He claimed that the scam runs into several hundred crores. “The banks have deprived the farmers of not only 14 districts of the Vidarbha and Marathwada regions of Maharashtra but also other states from the monetary assistance from the Union government. The farmers are committing suicide because they do not have money to repay their loans and continue sustainable farming,” he said.