Chennai: Minister for Cooperation I Periasamy dropped a bombshell in the Assembly on Wednesday when he said irregularities in the implementation of the crop loan waiver scheme during the AIADMK government has resulted in a loss of at least Rs 516 crore to the State government.
Sources said that the government will launch a detail probe will be launched into this. The government has found that loans were extended to beneficiaries disproportionate to their land holdings and in violation of the norms fixed by a State-level technical committee for disbursing loans.
“Crop loan waiver certificates were issued to 80% of the loanees. It has been found that loans were extended disproportionate to the land holdings of the beneficiary farmers,” the Minister said.
AIADMK MLA and former Minister for Cooperation K Raju (Madurai West) said the government could act against those responsible for the irregularities.
Periasamy said several cases of irregularities had been reported, especially in Salem and Namakkal districts. He added: “It looks as if the beneficiaries had known that the government was about to announce a waiver scheme.”