BENGALURU: Small farmers, landless agricultural labourers and people from weaker sections no longer have to repay loans they have taken from private money lenders, as the state government has implemented Debt Relief Act 2018.
Outgoing Chief Minister HD Kumaraswamy called it his parting gift to the people of the state, hours before he lost the trust vote in the assembly on Tuesday.
According to the Act, every debt incurred by a debtor before the date of commencement of the Act and payable by him to his creditor on such date shall be deemed to be wholly discharged. Also, no civil court shall entertain any suit or other proceedings against the debtor or his surety for the recovery of any amount of such debt.
Kumaraswamy said the Act that helps those with their annual income less than Rs 1.20 lakh came into effect from Tuesday.
"I am very happy to announce its implementation as it is one more gift to poor farmers and people from weaker sections," the CM said.
President of India had given assent to the bill on July 16.
Under the Act, Assistant Commissioners (AC) have been appointed as the debt relief officers. Those who have taken loans need to furnish the details to them within 90 days.
"They can furnish whatever details they have about loans taken from private money lenders and the officers will take necessary action. I request people to make use of the Act," Kumaraswamy added.
After receiving the application from debtors, the officer conducts an inquiry if necessary and passes an order releasing the mortgaged property and grants a certificate of redemption in the prescribed form, which is admissible as evidence of such redemption in any proceedings before any court or other authority.
Any person failing to comply with the direction of the officer or contravening the provisions of the Act can be punished with imprisonment for a term, which may extend to one year and with a fine which may extend to Rs one lakh.