CHIKKAMAGALURU: Instead of living a comfortable life, Shanti (name changed) and her family face severe financial difficulties despite owning about 15 acres of coffee plantation in Mudigere taluk.
A private bank filed a case under the Securitization and Reorganization of Financial Assets and Enforcement of Security Interests (SARFAESI Act) to recover Rs 50 lakh through the auction of its coffee plantations.
The action violated parliamentary guidance that plantations should not come under SARFAESI, leading plantation owners to question whether banks were complying with parliamentary directives.
Similar hardships affect many families in Chikkamagalur and Hassan districts.
Although Union Commerce and Industry Minister Piyush Goyal confirmed to Congress MP Kota Srinivas Poojari in the Lok Sabha that coffee estates are exempted from the SARFAESI Act, plantation owners have reported continued harassment by banks.
Shanti’s joint family has been under pressure from financial institutions for years. She told TOI: “I lost my husband a few months ago. He died of cardiac arrest due to stress from financial institutions. He was distraught due to pressure from financial institutions.”
Her brother-in-law faces serious health challenges. Currently, Shanti and her sister Lalitha (not her real name) manage the estate independently. The bank plans to hold the auction on December 19 and 20.
“Unidentified people came to our house to inspect the property without any information. We were worried about this because only women live in the area,” she said.
Since 2018, the estate has suffered losses due to natural disasters and Covid-19. “We took a loan of Rs 2.3 million and repaid it in two installments, but due to crop damage, we were unable to pay the outstanding amount,” Shanti said.
A Belur taluk plantation owner tried to sell 10 acres of his land to repay a loan but received extremely low offers. The bank has now issued an auction notice. He questioned banks for ignoring parliamentary directives and said: “Life has become very difficult because of pressure from moneylenders.”
MP Poojari revealed his knowledge of the situation to TOI. “I am trying to contact Finance Minister Nirmala Sitharaman to find a solution,” he said, warning that agencies conducting property auctions would face severe consequences.
Coffee Board of India Chairman MJ Dinesh acknowledged the recent difficulties experienced by growers and mentioned efforts to mediate between growers and financial institutions. He said an appropriate forum would be established to address these issues.
