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SBI disburses loan to farmer 3 years after death, kin on notice of default for loan they never took

The bank reportedly sent recovery notice for the farm loan it sanctioned to an individual three years after he died, while the family maintain that they never received any loan.

Bank issues loan to farmer after three years of death
Bank issues loan to farmer after three years of death
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Published : Mar 30, 2023, 8:41 AM IST

Chindwara (Madhya Pradesh): In a bizarre incident, a deceased farmer was disbursed a loan three years after his death in Madhya Pradesh's Chindwara district. The kin of the deceased farmer was slapped with a notice by the bank branch which claimed that the loan beneficiary had failed to repay the received loan.

The incident came to light when the farmer's son approached the District Collector for redressal. Shambhu Dayal Verma, a resident of Toonwada village of Chaurai tehsil, petitioned the District Collector to intervene as the family was not able to apply for loans elsewhere as they had been blacklisted for defaulting the 'loan' which they never took.

Talking to the media, Shambhu, son of the deceased farmer Ajab Singh Verma said, "My father was a farmer and he applied for a loan in 2006, but he passed away in the same year. However, the State Bank of India, Chhindwara issued a loan in his name in 2009."

"In 2018, during the Kamal Nath government in the state, the government decided to waive loans of up to Rs 2 lakh to the farmers. Even we received this letter. This was when we came to know about the loan. But when we never received any money from the bank, how could they waive the loan?"

Shambhu further said, "we again received a notice from the bank for the repayment of Rs 2,75,000 loan. The bank officials often pressurise my family to repay the loan. We are being harassed time and again by bank officials for the repayment of a loan that we never took. Due to this fake loan case, we are not able to get loans from any other banks."

Also read: Farmer dies by suicide due to crop failure, high debt in Bundi, Rajasthan

We have complained about this to the District Collector. We told him that when my father passed away in 2006, how can the bank issue a loan in his name in 2009? We have requested also him to solve this fake bank loan so that we can take loans from other banks, Shambhu added.

Chindwara (Madhya Pradesh): In a bizarre incident, a deceased farmer was disbursed a loan three years after his death in Madhya Pradesh's Chindwara district. The kin of the deceased farmer was slapped with a notice by the bank branch which claimed that the loan beneficiary had failed to repay the received loan.

The incident came to light when the farmer's son approached the District Collector for redressal. Shambhu Dayal Verma, a resident of Toonwada village of Chaurai tehsil, petitioned the District Collector to intervene as the family was not able to apply for loans elsewhere as they had been blacklisted for defaulting the 'loan' which they never took.

Talking to the media, Shambhu, son of the deceased farmer Ajab Singh Verma said, "My father was a farmer and he applied for a loan in 2006, but he passed away in the same year. However, the State Bank of India, Chhindwara issued a loan in his name in 2009."

"In 2018, during the Kamal Nath government in the state, the government decided to waive loans of up to Rs 2 lakh to the farmers. Even we received this letter. This was when we came to know about the loan. But when we never received any money from the bank, how could they waive the loan?"

Shambhu further said, "we again received a notice from the bank for the repayment of Rs 2,75,000 loan. The bank officials often pressurise my family to repay the loan. We are being harassed time and again by bank officials for the repayment of a loan that we never took. Due to this fake loan case, we are not able to get loans from any other banks."

Also read: Farmer dies by suicide due to crop failure, high debt in Bundi, Rajasthan

We have complained about this to the District Collector. We told him that when my father passed away in 2006, how can the bank issue a loan in his name in 2009? We have requested also him to solve this fake bank loan so that we can take loans from other banks, Shambhu added.

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