District Collector Ayush Prasad has issued strict instructions prohibiting banks from adjusting the compensation granted to rain-affected farmers against their outstanding loans. The order follows the state government’s announcement of financial assistance to those who suffered crop losses due to heavy rains in September.
According to the directive, under no circumstances should the compensation amount deposited in farmers’ accounts be transferred to loan accounts or withheld for any reason. Prasad warned that any violation of this order would invite legal action under the Disaster Management Act.
The government has announced that the financial aid will be credited to eligible farmers’ bank accounts before Laxmipujan. Joint surveys conducted by the Revenue and Agriculture Departments revealed that 4,09,474 farmers in Nashik district incurred crop losses across 2,88,806 hectares. A grant of Rs317.15 crore has been sanctioned for disbursement.
In response to farmers’ concerns that banks might automatically deduct compensation amounts to recover pending loan dues, the District Collector has directed the Lead Bank, District Deputy Registrar, and managers of nationalised and cooperative banks to strictly comply with his order.
