Maharashtra Govt Seeks ECI Clearance For Farm Loan Waiver
Once the ECI grants approval, the Cooperation Department will place a proposal before the State Cabinet for clearance: Senior official
MUMBAI: The Maharashtra Cooperation Department on Tuesday sought permission from the Election Commission of India (ECI) to implement the farm loan waiver scheme during the Model Code of Conduct (MCC) in force for the Legislative Council elections. The department argued that the scheme, announced in the State Budget, would benefit farmers and not members of local bodies, who are the electorate for the Council polls.
A senior official said that once the ECI grants approval, the Cooperation Department will place a proposal before the State Cabinet for clearance.
The official said the department had written to Maharashtra Chief Electoral Officer S. Chockalingam seeking approval to implement the Punyashlok Ahilyabai Holkar Farm Loan Waiver Scheme. “We have stated in the letter that the scheme was announced by Chief Minister Devendra Fadnavis during the Budget Session in March 2026. No new benefits are being extended under the scheme. Moreover, the voters participating in the Legislative Council elections are not the beneficiaries. Therefore, there is no need to wait for the MCC to end before implementing the scheme,” the official said.
Another senior official from the State election machinery said the proposal would be referred to the ECI for consideration.
During the Budget Session, Mr. Fadnavis, who also holds the Finance portfolio, had announced the Punyashlok Ahilyabai Holkar Farm Loan Waiver Scheme under which crop loans of up to ₹2 lakh per eligible farmer would be waived.
According to sources, 51.24 lakh farmers have collectively availed loans exceeding Rs 72,000 crore. Of these, 43.63 lakh are unique borrowers. The loans were taken from 53 financial institutions, including District Central Cooperative Banks (DCCBs) and nationalised banks. Around 18 lakh farmers have taken loans worth Rs 20,122 crore from DCCBs. “Nearly 20 lakh farmers have outstanding loans of less than Rs two lakh,” a source said.
In October 2025, the State government constituted a committee headed by MITRA CEO Praveen Pardeshi to frame criteria for the loan waiver and recommend short-term and long-term measures to address agrarian distress in Maharashtra. The committee was formed following protests led by Bachchu Kadu demanding a farm loan waiver.
The Pardeshi committee submitted its report to the government around 25 days ago, and the report is currently being examined by the Cooperation Department.
On Sunday, the Chief Minister reiterated that the government would implement the farm loan waiver before June 30. He said the Cabinet had discussed the issue and that the implementation plan was in the final stage.
