MP Fake Farm Loans Scam: Police Arrest 1 in Connection With 120-crore Scam

Bhopal: As the implementation of the much-hyped farm loan waiver of below Rs 2 lakh by the Congress government begins in Madhya Pradesh, the irregularities and the corruption from the previous BJP government’s rule have begun to emerge.

The Madhya Pradesh police on Friday arrested a former manager of Chinor Cooperative Bank, Gwalior – Mukesh Mathur – in connection with Rs 120-crore fake farm loan distribution scam. The police have also launched a search to nab another accused, Kalicharan Gautam, who was the secretary of Urwa Sakh Cooperative Society.

The case of corruption against Mathur and Kalicharan was registered on August 28, 2016 at Chinor police station by farmers, for sanctioning farm loans in their names, and having withdrawn it. But owing to the alleged political support, no action has been taken against them.

According to the bank’s record – revealed after the recent complaint – when Kalicharan was secretary of the society, he had managed to sanction a loan of Rs 95,222 in his name. Besides, he sanctioned the same amount to eight other family members including his son, daughter-in-law, his nephew and others.

In addition to that, Kalicharan allegedly helped Mathur in collecting farmers' documents so that the farm loans can be sanctioned without their consent.

The irregularities came to light when the lists of farm loan waiver beneficiaries were published at panchayats. Soon after, the farmers lodged a complaint with the district magistrate and with the departments concerned. They reported that despite having repaid their loans, their names appeared in the farm loan waiver list. Some of the farmers claimed that even though they hadn’t taken any loan from the bank, loans have been sanctioned in their names.

“I haven’t taken any farm loan from the bank, but Rs 10,000 loan has been sanctioned in my name, and it’s mentioned in the farm loan waiver list. How did it happen?” asked a 58-year-old Lakhan Singh Kushwaha of Gwalior.

While another farmer, Kashiram, said that he had taken a loan of Rs 31,000 from a cooperative bank, and repaid the same a year later. “I have ‘no objection certificate’ of the bank which was given to me after the repayment of my loan, but my name with the same amount is in the list. How is it possible?” he asked.

Besides, Man Singh Yadav of Banwar reported that he has not taken any loan from the Cooperative Bank, but a loan of Rs 1.28 lakh has been sanctioned against his name. While, Dharamveer and Sarvesh, residents of Garajar panchayat reported that loans of Rs 1 lakh in each name have been mentioned in the loan wavier list; however, they have said that they had never taken these loans.

When the local newspapers reported the matter and former Congress MLA Brijendra Tiwari from Gwalior raised the issue before Chief Minister Kamal Nath, the pressure mounted, and Gwalior police arrested Mathur.

“The duo, Mukesh Mathur and Kalicharan have misused their posts, and they have done corruption of Rs 120 crore. They not only looted crores of rupees in the name of sanctioning the farm loans, but also kept the accounts of farm loans active despite the repayment,” alleged former Congress MLA of Gwalior, Brijendra Tiwari.

He further said that Gwalior Congress had conducted an enquiry of 1,143 farm loans sanctioned by the Chinor Cooperative Bank to the farmers when Mathur was the bank manager. The party claims to have found that out of 1,143 loans, 300 loan beneficiaries don’t exist, and more than 500 farmers denied taking any type of loan. However, the bank claimed that loans worth Rs 5.50 crore were sanctioned to 1,143 farmers.

“I have submitted my reports to the police and district administration, but since it was happening with the support of BJP leaders, no action was taken against them. However, now, as the enquiry has begun, big names will emerge soon,” said Tiwari.

Gwalior in not the only district from where irregularities and corruption have been reported. In districts like Harda, Sehore, Dewas, Neemuch, Mandsaur and Indore too, such cases have been reported.

On Friday, the farmers of village Hyder Ganj of the Sehore district submitted a complaint to the district collector for alleged irregularities committed by Seva Cooperative Society.

The farmers claimed that they had taken Kisan Credit Card (KCC) loan from Seva Cooperation Society, Mahadia, and also repaid it. They alleged that despite repaying the loan on time, the list of loan waiver shows repayment of interest against their names. The farmers claimed that they were given loan at zero interest, but their interests were calculated separately. They demanded investigation against the bank officials as well as cooperative societies.

When contacted, General Manager of District Cooperative Central Bank Milind Sahastrabahu said, “The probe has begun in the matter, and the documents related to fake farm loans distribution are under scrutiny. I held a meeting with the Crime Branch and shared documents with them. Soon, the bank will file a complaint against the offenders.”

Soon after forming the government, the CM had signed an order to waive farm loans of below Rs 2 lakh in the state. A month later, the government has published lists of 53,30,000 lakh beneficiaries in their respective panchayats, who had taken loans from 25 national and cooperative banks. The farm loan wavier is costing more than Rs 50,000 crore to the government exchequer.