Chandigarh, May 31: To prevent the sale of agricultural land by cooperative banks for recovering loan arrears, the Punjab Cabinet on Tuesday gave its nod to abolishing Section 67-A of the Punjab Cooperative Societies Act-1961 which provides for kurki (land attachment).
The amendment to the Act, to be tabled in the coming session of the Vidhan Sabha, will benefit 15 per cent of the 10.53 lakh farmers with land-holding of up to five acres.
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A senior PNB official said the government’s decision was applicable only to borrowers of cooperative banks. Already, the Cooperative Department has told the Finance Department that after the proposed amendment, it may face difficulty in recovering loans. Repayment of loans has fallen to nearly 30 per cent ever since the new government took over.
The Cabinet also decided to form a sub-committee to review the Agriculture Debt Reconciliation Act 2016 for creating a more “enabling environment” for agriculture.
News Source: http://www.tribuneindia.com
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