Kin of Rajasthan Farmer, Who Died by Suicide Blaming Gehlot, Gets Debt Recovery Notice

While ending his life by suicide, Kadela blamed the Gehlot government for not implementing its promise of waiving farm loans from the nationalised banks.

Jaipur: It’s been almost two years since the suicide of Sohan Lal Kadela, a debt-ridden farmer from Thakri village in Raisinghnagar block of Rajasthan’s Sri Ganganagar district, drew media attention on the account of his suicide note in which he had held chief minister Ashok Gehlot and his former deputy Sachin Pilot responsible for his suicide. Even today, his family is struggling to repay the accumulating debt amounting to approximately three lakh rupees.

For his eight bighas of land in the district, Kadela had sought two crop loans of around Rs 2 lakh each from the Syndicate bank in Raisinghnagar. Due to the low crop yield for two successive years, it became impossible for him to discharge the loan.

When the Congress government announced to waive off the loans of the state farmers after coming to power in the 2018 assembly polls and later iterated the promise during the 2019 Lok Sabha polls, Kadela had hoped that the loan waiver would put an end to his problems.

While ending his life by suicide, Kadela blamed the Gehlot government for not implementing its promise of waiving farm loans from the nationalised banks.

In his note, Kadela had written, “Ashok Gehlot and Sachin Pilot are responsible for my death. No one else shall be blamed for it. Within ten days after the general elections, they promised to waive farmers’ debt [from nationalised banks]. What happened to their promise? I request that my body not be burnt until the debt of all brothers [farmers] is waived.”

As the matter grabbed headlines, the Gehlot government had assured that it’s committed towards securing a better future for the farmers.

“Whenever a person dies or kills themselves, it’s absolutely unacceptable to us,” Pilot had said in a press conference that time.

Also read: The Bogus Nature of Congress’ Farm Loan Waiver Promises

However, in January this year, Syndicate Bank served Kadela’s family a notice warning them to pay the debt or else be ready for a strict action that would be taken against them by the bank for recovering the loan amount.

The debt recovery notice issued to the farmer’s family. Photo: Author provided.

Financial hardship

After Kadela’s death, his family, consisting of his mother Tili Devi, wife Ganga (38), elder daughter Minakshi (19) and younger son Ghanshyam (16), has been facing extreme hardship in order to meet even their basic expenses.

The only source of income for the family is his mother’s pension worth Rs 1,000 per month under a government pension scheme and his wife’s employment under the Mahatma Gandhi Rural Employment Guarantee Act (MNREGA).

To add to the miseries, last month, Kadela’s ailing mother passed away. The family is now worried about the fall in their income which came through her pension.

His daughter Minakshi says that since the last two years, they have not been able to cook meals twice a day.

“We cook dal every day and eat it for the whole day,” she says. “Even, if we wish, we can’t afford to have two different meals a day.”

“Earlier, father used to bring fruits at home but it’s not possible for us to buy them now,” she added.

Minakshi is moved by the extreme step of her father. After his suicide, she decided to join the Indian Police Service. She even joined a coaching centre, but later due to poor financial condition at home, she could not manage the fees.

“It [coaching] required an annual fees of Rs 6,000,” says Minakshi. I had paid Rs 1,000 and the centre had allowed me to pay the remaining fees in instalments but after the lockdown, there was no earning and I had to drop out.”

Minakshi had expected that her grandmother’s pension would enable her to pay the coaching fees. However, her demise had left her in lurch.

“I received a call from the coaching centre asking me to join again and pay the fees later but I’ve no means to pay it anytime soon,” she added.

Kadela’s family also claims that the government has yet not paid any compensation in lieu of acquiring his land under the Bharatmala project.

Post Kadela’s suicide, the Gehlot government has only been denying that he was under any debt. “I’ve been told that the person was not actually in debt. But whatever the matter, someone has died,” Pilot had said.

Also read: Farm Loan Waivers and Corporate Defaulters Are Two Sides of the Same Coin

However, the All India Kisan Sabha (AIKS) in Sri Ganganagar has staged protests to remind the Congress government of its promise to waive the farm loans in the state.

“This government seems to have forgotten about the farmers in the state,” said Kalu Johari, an All India Kisan Sabha (AIKS) leader in Sri Ganganagar.

Over the past few years, loan waiver has become an election gimmick in Rajasthan. During the previous Vasundhara Raje-led BJP government, a one-time waiver of up to Rs 50,000 for small and marginal farmers who had defaulted on short-term loans from cooperative banks, was done in the run up to the assembly polls in 2018.

Later, the Ashok Gehlot government also promised a two-phase waiver. First, to waive loans of cooperative and development banks and second, of the loans taken from commercial and rural banks.

While the first phase of the waiver as promised by the Gehlot government has been effected, the second phase, which constitutes the major chunk of farm loans, is not yet implemented.

CBI Files Case Against Dairy Firm Kwality for Rs 1,400-Crore Bank Fraud

The banks said in a complaint that Kwality Ltd cheated them by ways of diversion of bank funds, sham transactions with related parties and fabricated documents.

New Delhi: The Central Bureau of Investigation (CBI) said on Monday they had registered a case against dairy company Kwality Ltd. and its directors for allegedly cheating a consortium of banks of around Rs 1,400 crore ($190 million).

Founded in 1992, the company describes itself as one of India’s fastest growing private dairy firms, with six manufacturing units, and exports to more than 28 countries, according to its website.

Based on a complaint by state-run lender Bank of India, the CBI said it has registered a case against Kwality for alleged “diversion of bank funds, sham transactions with related parties, fabricated documents”.

“Investigation is continuing,” CBI said in a press release, adding the agency had conducted searches at eight locations on Monday.

Kwality’s managing director Sanjay Dhingra, who is named in the CBI case, was unavailable for comment to Reuters.

The other banks named in the complaint include Canara Bank, Bank of Baroda, Andhra Bank, Corporation Bank, IDBI Bank, Central Bank of India, Dhanlaxmi Bank and Syndicate Bank.

Also read: Two US-Based Law Firms File Class Action Suits Against HDFC Bank

Last week, Kwality posted a consolidated net loss after tax of Rs 14.25 crore for the June quarter, compared to Rs 64.62 crore a year ago.

In 2016, US-based investment firm KKR & Co. L.P. backed the company with Rs 520 crore for expansion and part repayment of debt.

Two years later, KKR’s Indian arm began bankruptcy proceedings against Kwality.

(Reuters) 

Centre Announces Sweeping Plan to Merge 10 Public Sector Banks Into 4 Entities

The merger of Punjab National Bank, Oriental Bank of Commerce and United Bank will automatically make it India’s second-largest PSB after the State bank of India.

New Delhi: Finance minister Nirmala Sitharaman on Friday announced four separate mergers of public sector banks (PSBs), in a move that will have ten state-run lenders being combined to form four new entities.

According to Sitharaman, Punjab National Bank (PNB), Oriental Bank of Commerce and United Bank will be merged and automatically become India’s second-largest PSB after the State bank of India.

“It [the merged entity] will have a business of Rs 17.95 lakh crore (1.5 times of PNB). It will have the second-largest branch network in India, with 11,437 branches. The CASA ratio of the amalgamated bank will be 40.52% and CET-1 would be 7.46%,” she said at a press conference.

Among the other mergers, Canara Bank and Syndicate Bank will be combined to form the fourth-largest PSB, with a business of Rs 15.20 lakh crore. The Union Bank of India will be merged with Andhra Bank and Corporation Bank. And the Indian Bank will be merged with Allahabad Bank.

This is the second major step the Narendra Modi government has taken on PSB consolidation in the last few years.

In September 2018, the government announced its plan to merge three other state-run banks (Bank of Baroda, Dena Bank and Vijaya Bank).

Sitharaman also announced that a little over Rs 55,00 crore capital would be infused for “credit growth and regulatory compliance”.

Out of the Rs 55,250 crore that has been earmarked for this recapitalisation effort, Rs 16,000 crore will go to the Punjab National Bank and Rs 11,700 crore will go to Union Bank of India.

Police Arrest Chief Executive, Director of Bank of Maharashtra over Loans

“Bank officers colluded with DSKDL by misusing their power and authority with dishonest and fraudulent intention,” the police said in a statement.

Mumbai: The police arrested the chief executive and an executive director of state-run Bank of Maharashtra on Wednesday, accusing them of misusing their authority in making loans to a property developer.

Authorities have stepped up scrutiny of the state banking sector after a more than $2 billion fraud unearthed in Punjab National Bank, the second-largest state-run lender, this year.

Bank of Maharashtra Chief Executive Officer Ravindra Marathe and an executive director, Rajendra Gupta, were among six people arrested, police said.

Among the rest are Sushil Muhnot, a former chairman and managing director of the bank, a manager at the bank, and a chartered accountant and an employee of D.S. Kulkarni Developers Ltd (DSKDL), police said.

“Bank officers colluded with DSKDL by misusing their power and authority with dishonest and fraudulent intention,” the police said in a statement.

Bank officials at the offices of Marathe and Gupta declined to comment. Muhnot could not be reached, and calls to the developer’s headquarters were not answered.

Current and former officials at some other state lenders, including IDBI Bank, Indian Bank, Syndicate Bank and Canara Bank have been investigated over alleged loan fraud cases.

State-run banks have reported 8,670 cases of fraudulent loans totalling 612.6 billion rupees ($9 billion) over five financial years up to March 31, 2017, central bank data shows.