Driving Naari Programme launched in Chandigarh
Chandigarh,In a bid to provide big relief to the farmers who have not been able to repay the loans advanced from Primary Cooperative Agricultural Development Banks (PADBs) for reasons and circumstances beyond their control, the Punjab Government has decided to introduce One Time settlement (OTS) scheme- 2015 to provide them an opportunity to liquidate their over dues.
Disclosing this here today a spokesperson of the Chief Minister’s Office said that this OTS was aimed at providing relief to those farmers, who have been defaulter to PADBs, by providing them an opportunity to clear their dues as per specified in the scheme on one hand and facilitating the banks in recycling of funds realised from non performing assets on the other. This scheme would also help the banks in reducing overhead expenses of recovery of overdue amount so that energy/ time utilised in efforts for recovery of these loans may be gainfully deployed in some other development activity. This pro-farmer scheme would be applicable for all loans advanced by the PADBs in the state, which have become overdue as on or before June 30, 2014.
The spokesperson further said that the scheme would also cover cases where suites have been filed and also the cases where decrees have been obtained. After the settlement was reached PADBs may take appropriate steps for closure of such cases in respective courts. However, the scheme would not cover cases of fraud, malfeasance and wilful defaulters.
In case the borrower does not honour the settlement, it would treated as null and void and in such cases banks would be at liberty to recover the amount, as if no settlement has been made. These settlement amounts would be calculated by charging simple interest @ 9% per annum on the default principal amount due, provided that the total interest charged should not exceed the principal loan amount. However, there would be no concession regarding payment of principal amount.
Likewise, no additional recovery would be made from such borrowers who have already paid double the principal amount or more than double the principal amount. 25% of the settlement amount should be paid on the date of settlement and the balance of 75% would be payable within a maximum period of one year in two instalments from the date of settlement. In case the balance amount was paid within 30 days of settlement, then no interest for a period of upto 30 days would be charged on the amount paid within 30 days from the date of settlement.
However, in case the balance 75% amount was not paid within the stipulated period, the settlement would stand cancelled and all legal proceedings initiated for recovery of loan would stand restored. The borrower settling the dues under the scheme would be eligible for fresh loan only after the settled amount was fully paid. A screening committee under Assistant Registrar Cooperative Societies of the PADB with Assistant General Manager of District, Manager PADB and Inspector Audit PADB has been authorised to screen the beneficiaries for settlement of loans as per the guidelines of the scheme.
The screening committee would consider each case referred to it and if found fit it would approve and send its recommendations to the Revisional authority who would be the Deputy Registrar, cooperative societies concerned. In case his application for settlement of loan was rejected by the committee, the applicant could further approach the concerned Joint Registrar Cooperative societies of the Division against such rejection who would decide the case on merit. Special staff deputed from PSCADB would conduct a random checking of atleast 20% of the settled cases. Losses to be incurred under the scheme on account of relief to be given to the farmers would be met out of the Bad and Doubtful fund by the PSCADB and PADBs in ratio of 60% and 40% respectively.
