Farmers' Suicides: Karnataka High Court Seeks Govt's Reply Over Excluding Borrowers From Unlicensed Private Lenders In Compensation Scheme

The Karnataka High Court on Monday directed the state government to file a detailed reply, within four weeks, to an application seeking modification of a GO dated July 8 2021, for providing compensation to families of farmers who committed suicide on account of failure to repay loans, taken from licensed private money lenders. The application filed by Akhanda Karnataka Raitha Sangh prays for directions to the government to provide compensation under the order to all farmers who have availed loans from all classes of private money lenders, irrespective of whether they are licensed. The state had issued the July 8 order, after the high court had pulled up the state government for creating a classification among farmers who committed suicide, whereby financial aid is given only to farmers who ended life after borrowing from banks and financial institutions. A bench led by then Chief Justice Abhay Oka had said, "Prima facie, the cause for which farmer commits suicide is important...because if he is heavily indebted...he is not able to repay the loan so he has taken this option of committing suicide. What is the difference between the class of farmers who has taken money from banks and credit societies and commit suicide and class of farmers who take loan from private money lenders and committed suicide? Why has the state made the distinction between the two." It had added, "Prima facie it appears to us that cause of suicide is the inability of farmers to repay the borrowed amount with interest. Therefore, prima facie it is very difficult to accept that the classification made by the state government will stand the test of Article 14 of the constitution of India." The application states that the impugned GO is arbitrary and discriminatory and it violates Article 14 of the Constitution:"The order creates two classes of farmers who have availed loans. However, there is no intelligible differentia between the two classes created for the purpose of the order as both classes relate to farmers who have availed loans from private money lenders. The factum of the money lenders being registered not having any relation to money lending or subsequent suicides." Further, it is stated that "It is the duty of the money lenders and the state government to ensure that money lending is carried out legally with due registrations, farmers who borrow loans from such lenders must not be punished for the money lenders illegality, as this is arbitrary in nature and in violation of Article 14 of the Constitution." It was also said that "Being a welfare state the government must endeavour to provide the widest import to the impugned order to ensure that every farmer impacted by the indebtedness and being driven to suicide are covered by its benefits." A bench of Acting Chief Justice Satish Chandra Sharma and Justice Sachin Shankar Magadum in their order said: "IA's are filed by the petitioner and the main ground raised in the application is that there is no compensation provided by the state government to farmers who have taken loans from private money lenders who are not registered and who have committed suicide. The application also mentions there being no proper mechanism to find out the deaths of farmers, beneficiaries and other factors, on account of farmers death. Applications are taken on record and allowed and learned advocate for the state government is granted four weeks time to file a detailed reply to the aforesaid IA's." The court has now posted the matter for further hearing on November 12.Case Title: Akhanda Karnataka Raitha Sangha v. Union Of India

Farmers' Suicides: Karnataka High Court Seeks Govt's Reply Over Excluding Borrowers From Unlicensed Private Lenders In Compensation Scheme

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"Money lenders being registered or not doesn't have any relation to money lending or subsequent suicides", the application states.

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