The Telangana High Court on Wednesday (November 4) sought the response of the State government and State Bank of India in a plea challenging the denial of crop loan waiver benefits to a farmer whose outstanding loan allegedly exceeded Rs 2 lakhs, as per the Telangana Crop Loan Waiver Scheme, 2024.

The single judge bench of Justice Surepalli Nanda asked the respondents to file their counter affidavit within two weeks. The court has posted the case for further hearing on November 17.

The writ petition has been filed by a female farmer from Medak District, challenging the action of the District's Director of Agriculture who allegedly issued a letter in June 2026, deferring the disbursement of her Rs 2 lakhs crop loan waiver benefit. The Director, in the letter, reasoned that the deferment of waiver was due to the freezing of software portal data, as well as pending government instructions for outstanding loans exceeding Rs 2 lakhs.

To recap, the farmer had purportedly taken a Kisan Credit Card (KCC) loan from the Medak Branch. In a connected development, a Government Order from July 15, 2024, had accorded families with cumulative loans exceeding Rs 2 lakhs with the benefit of being fully eligible for the waiver up to Rs 2 lakhs, provided they clear the excess amount above the threshold.

The petitioner's total outstanding loan was around Rs 2,13,000/-. To comply with the loan waiver requirements, the farmer had deposited Rs 23,000 in two instalments back in 2024 as per the plea. According to the plea, it brought down the loan balance below Rs 2 lakhs, meeting the eligibility threshold.

Before the High Court, the petitioner's counsel Advocate Rayachuri Hari Rohit Singh contended that despite fulfilling all criteria under the GO for loan waiver, the disbursement was withheld unreasonably citing administrative glitches and delays. Moreover, the petitioner has said that RTI applications filed by her yielded positive replies from the Bank as well as the District Agriculture Officer, stating her to be eligible for availing the loan waiver settlement.

The petitioner has alleged that the refusal to grant loan waiver, purportedly by citing administrative delays, are arbitrary and discriminatory in terms of the Government Order, and Articles 14, 21, and 300 A of the Constitution.

Therefore, the farmer seeks a direction to the respondent authorities to disburse and credit the crop loan waiver amount of Rs. 2,00,000 into her KCC loan account immediately, along with the reversal of all accrued interest and charges levied on the eligible waiver amount from August 16, 2024, till date.