Hyderabad: Former Telugu Desam MLA from Vijayawada Adusumilli Jayaprakash has moved the Hyderabad High Court, seeking a direction to the Telangana and Andhra Pradesh governments not to proceed any further with the waiver of agricultural loans availed from banks.
He submitted that the TD has promised a total waiver of loans not only to farmers but also to self-help women groups in AP and the TRS has promised waiver of farmer loans of up to Rs 1 lakh.
The petitioner contended that the state government did not have any power to waive bank loans and the power purely rests with the Union of India.
He said the business of banking including the credit to agriculturists by banks are totally outside the domain of the states and the states cannot deal with banking or bank loans in any manner, directly or indirectly and therefore, they cannot even apply funds of the states for any purpose connected with banking or bank loans.
He urged the court to restrain the respondents to proceed further in the matter and direct the Reserve Bank of India, the Union of India and the Indian Banks Association not to permit any loan waiver.
