Election commission has asked the Karnataka Government to stop the transfer of money to the loan accounts of farmers under the farm-loan waiver scheme.
The decision to stop the scheme temporarily was taken after the model code of conduct came into force ahead of the Lok Sabha election. Further,the scheme entailed cash transfer to the beneficiary which could sway the beneficiaries weeks before the polling.
Farm loans are either crop loans or investment loans taken from banks to buy inputs or agricultural equipment.When there is a poor monsoon or natural calamity,farmers could not be able to repay their loans.So the centre or the state government take over the liability of farmers and repay the banks.Waivers are mostly selective,that is,only particular loan types,particular categories of farmers,or loan sources may qualify.
The Election Commission’s Model Code of Conduct is a set of guidelines issued to regulate political parties and candidates prior to elections.The rules range from issues related to respect to (a)speeches (b)polling day, (c)polling booths (d)portfolios (e)content of election manifestos (f)processions and (g)general conduct,so that free and fair elections are conducted.The MCC comes into force from the date the election schedule is announced until the date that results are out.