CID graft inquiry hits farm loan waivers in Andhra Pradesh

Hyderabad: A CID inquiry on co-operative banks and tours of some senior commercial bank officials has hit farmers under waiver of farm loans. Around Rs 800 crore were not credited in farmers’ accounts by some commercial and co-operative banks. The AP government had released Rs 4,665 crore to the banks through AP Farmers’ Empowerment Corporation under the waiver of farm loans schemes to credit the amount into the eligible farmers’ accounts. Out of this, Rs 1070 crore was released to co-operative banks.

When the co-operative banks were crediting the amount to the farmers’ accounts, the state government ordered a CID inquiry on some District Co-operative Banks (DCCB) on allegations that there were irregularities in giving loans. After the government ordered the CID inquiry, the co-operative banks have stopped crediting the money. When asked, bank officials told farmers that they could not credit the amount since an inquiry was on.

The CID is inquiring into the irregularities in Kadapa, Krishna and other districts. Co-operative banks have to pay around Rs 400 crore to the farmers. Officials, however, said that the inquiry had nothing to do with the payment.