The government auditor CAG has sought details from cooperative banks, regarding the implementation of the Rs 71,000-crore farm debt waiver scheme.
It has also sought information from other banks including regional rural banks about the waiver scheme.
The scheme provided relief to about four crore farmers. Information has been sought to examine how effectively the Agricultural Debt Waiver and Debt Relief Scheme was
implemented, sources said.
The Comptroller and Auditor General (CAG) is in the process of collating information on the implementation of the scheme. Once the report is finalised it will be presented in
Parliament.
Usually, CAG does not audit banks as it is done by the RBI and chartered accountants.
In 2008, the government had announced the scheme for waiving loans of about three crore farmers and giving partial relief to one crore more cultivators.
Under the scheme, marginal farmers cultivating crops in agricultural land of up to five acres got full debt waiver on their short-term crop loans. The scheme, which was for a
limited period of 30 days, closed on June 30, 2008.
Other farmers having more than five acres of land, received a one-time settlement relief after the payment of a portion of the debt.
The debt relief scheme, however, ended in June 2010.