In his last move as the outgoing CM, HD Kumaraswamy on Wednesday, 24 July, announced a one-time debt waiver scheme for landless labourers and small farmers who had borrowed money through private channels like money lenders, pawn brokers, and banks.
Making the announcement at Krishna, the official residence of the Karnataka CM, Kumaraswamy said that he is happy that even while stepping down he has managed to do something for the marginalised.
The Debt Relief Act, 2018 comes into effect immediately and applies to any loans taken until 23 July. The Bill had been cleared in the Assembly this February, and was approved by the President on 16 July and the government order was issued on Tuesday in Kumaraswamy’s "last government decision”.
“I request people, those who have taken loans from money lenders, banks, brokers... They must go and approach the Assistant Commissioner of revenue of that area. This is a one-time benefit, whatever the loan amount, under this Act, you will get benefit.”Kumaraswamy
Who Can Seek Benefits Under the Act?
Valid for a year, the Act applies to “landless agricultural labourers and small farmers ” who own less than two hectares of land and should have an annual income of not more than Rs 1,20,000. Applicants must submit relevant documents to the Assistant Commissioner of revenue or someone with a rank not lower than Tahsildar within 90 days of the commencement of the Act.
According to the Act, all debts held by the debtor up till that point would be considered discharged. No Civil Court should entertain any suit against the debtor for recovery, all existing proceedings shall abate. Creditors are also required to furnish details of their business to the concerned jurisdictional officer.
“Every mortgaged executed by the debtor or his surety as security for such debt in favour of the creditor shall be redeemed and the mortgaged property shall be released” reads a section of the Act.
Kumaraswamy said that the Act was reminiscent of the Debt Relief programme introduced by Devraj Urs when he was CM in 1976.
Farm Loan Waiver to Debt Relief
“When I took oath as CM, my government decided to waive off farmer loans, during such a time we planned to bring in the debt relief act. I once again wanted to bring such an act and help landless labourers and small farmers. We sent the proposal to the president for approval. The president has now signed this Bill, I thank him. A government order has been issued, I am happy that on my way out I have worked for the interests of the weaker sections,” he said, while refusing to take any questions on politics.
He also spoke about having a ‘tea party’ with various bureaucrats who did a good job during his tenure and created a positive change. “I have thanked them, I told them that their responsibilities is much more than the political crisis, as the uncertainty in government could continue,” Kumaraswamy said.
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