Members of the Bharatiya Kisan Union (BKU) in Karnal, Haryana, staged a protest against UCO Bank on Thursday, alleging that the bank is exploiting farmers through exorbitant loan recovery demands. The protest was sparked by the case of a farmer from Kohand village, who despite repaying more than double the principal loan amount, is still being treated as indebted and is facing threats of having his six-acre farmland seized. The farmer, Madan Pal Rawal, had inherited a loan of approximately ₹1.47 crore from his father, which he had been repaying until the COVID-19 pandemic devastated his poultry farm and left him unable to maintain regular repayments.
The bank has now raised its demand to an inflated ₹5.80 crore, far exceeding the original borrowing. The BKU has criticized the government’s double standards, pointing out that while it writes off debts owed to private moneylenders, it authorizes banks to auction off the homes and farmlands of struggling farmers. The union has announced that a 12-member delegation will meet with the Deputy Commissioner on September 16 to seek an immediate resolution to the issue.
The protest saw wide participation from BKU leaders and members, who marched through the city, carrying an effigy of the bank and raising slogans. The effigy was eventually set ablaze, symbolizing the farmers’ anger and frustration with the bank’s actions. The BKU has warned that it will intensify its agitation if necessary to prevent the auction of Madan Pal’s land.
The dispute highlights the growing tension between rural borrowers and financial institutions, particularly in the wake of the pandemic, which has left many farmers struggling with unsustainable debts. The BKU is demanding that the government take action to protect farmers from exploitation by banks and other financial institutions. The meeting with the Deputy Commissioner on September 16 is expected to be a crucial step in resolving the issue and preventing further escalation of the protest.
The farmers are arguing that the bank’s demands are unfair and that they are being forced to pay an inflated amount due to the bank’s own mistakes. They are also demanding that the government provide relief to farmers who are struggling to repay their loans due to the pandemic. The protest has brought attention to the plight of farmers in Haryana and the need for the government to take action to protect their rights and interests.