NO MOVE OR INTENTION ON PART OF PADB TO SELL LAND OF FARMERS FOR RECOVERING DUES: MD, PADB

CHANDIGARH, JULY 18, 2018: “With reference to the news item appearing in a section of the media today titled "Punjab agri bank to sell land of 12k defaulter farmers in 6 dists", it is clarified that there is no such move or intention on the part of the bank to sell the land of the farmers to recover its dues as quoted in the news item.”

Disclosing this here today, the MD of the Punjab State Cooperative Agriculture Development Bank (PADB) Mr. H.S. Sidhu categorically denied that the bank intends to sell the land of 12625 farmers in these districts as mentioned in the news item. Initiating legal action against the defaulters is the routine work of the bank but merely initiating legal action does not mean that bank will ultimately sell the land of farmers.

The MD further said that the bank primarily effects recovery by way of persuasion and never harasses a farmer in distress. But there are many wilful defaulters who inspite of various efforts and ample time being given to them, have not bothered to repay their loan installments even when they have the capacity to repay. It is evident from the fact that the bank had an overdue amount of Rs. 1363.87 Cr towards 71432 farmers as on 01.02.2018 and out of these bank has effected recovery of Rs. 194.74 Cr from 16469 farmers till 30.06.2018 and has not sold the land of even a single farmer.

He also said that the legal recourse to effect recovery viz. sale of land and / or arbitration proceedings under section 63-C of Punjab State Cooperative Societies Act 1961 which can mature into arrest warrants is taken as a last measure which is taken to its logical end only against big and influential defaulters.