6000 coffee growers in K’taka stand to lose plantations over unpaid loans
Owe over ₹500 crore to banks: Report
Bengaluru: Nearly 6,000 coffee growers across Karnataka’s key coffee-producing districts—Kodagu, Chikkamagaluru, and Hassan—are at risk of losing their plantations, as the deadline for repaying loans ended on Monday.
These growers collectively owe over Rs 500 crore to various banks in Karnataka. With the deadline under the one-time settlement (OTS) scheme now expired, banks are preparing to recover their dues by auctioning the plantations under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, as reported by Deccan Herald on Tuesday.
Though coffee crop loans are not covered under SARFAESI, loans taken for plantation development attract penal action. Various banks have already issued auction of property notices to coffee growers in Chikkamagaluru and Kodagu districts.
“Thousands of coffee growers in Karnataka who have taken loans for various development activities over the past many decades, have defaulted to banks and the total amount left unpaid has now swollen to more than Rs 500 crore,” DH quoted M.J. Dinesh, Chairman, Coffee Board of India, as saying.
Dinesh said that they met Finance Minister Nirmala Sitharaman in November 2024 and requested a package to bail out coffee growers. She agreed to their demands and in consultation with the Finance Secretary, a one-time settlement (OTS) scheme was prepared. Under the scheme, coffee growers were offered time until June 30, 2025, to repay loans with concessional interest rates—3 percent for loans under Rs 25 lakh, and 4 percent for loans above Rs 25 lakh and up to Rs 50 lakh.
However, the uptake has been limited. Only 518 growers in the state availed themselves of the scheme.
"Coffee growers have been facing several challenges such as low yield, high cost of operation. The labour and input costs have gone up steeply over the years. It will be very difficult for small growers to repay in one or two instalments. We urge the banks and the government to extend the deadline for repayment," DH quoted Arvind Rao, a grower from Chikkamagaluru and Chairman of Karnataka Planters Association, as saying.
Dinesh stated that banks have already started sending notices to growers who missed the March 31 cutoff and will begin the recovery of loans from July 1. He further added that he plans to meet finance ministry officials in Delhi this week to request an extension of the deadline.
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Porsche car crash case exposed systemic corruption: Pune police commissioner
Pune (PTI): The Porsche car crash case exposed "systemic corruption," but the Pune Police have successfully uncovered the nexus behind the replacement of the accused juvenile's blood samples with those of his mother, Police Commissioner Amitesh Kumar said on Wednesday.
The case made national headlines after the high-end car allegedly driven by the 17-year-old boy in an inebriated state mowed down motorcycle-borne IT professionals Anish Awadhiya and Ashwini Costa in the Kalyani Nagar area on May 19 last year.
"Last year’s Porsche car crash case sparked widespread discussions about Pune’s deteriorating social culture, alleged police corruption, and several other issues. Amid all the criticism, one positive aspect stood out: the case exposed systemic corruption.
"It also demonstrated how the police, working within the same system, managed to uncover the entire nexus behind the replacement of the juvenile’s blood samples with those of his mother," Kumar said while addressing Nasha Mukt Bharat Abhiyan, an initiative aimed at raising awareness against drug addiction, organised at Modern College.
He added that the juvenile has been released since he was a minor.
"However, his mother has remained in jail for over a year, and his father continues to be behind bars. Doctors from Sassoon Hospital and others involved are also still in jail," Kumar said, adding that one mistake by a child, and an attempt by his parents to cover it up, destroyed an entire family.
He said the police will follow up on this case until every guilty person is punished.
Kumar also appealed to students to stay away from intoxicating substances and drugs.
"You are not only endangering your own life but also putting your entire family at risk," he said, urging the youth not to fall prey to harmful addictions.
"Instead, stand strong and act as a force to ensure that drug abuse is curbed in your surroundings. We assure you of full police support," he added.
He further stated that if youth from all colleges unite and decide to end this menace, "the day is not far when not even one gram of drug will be sold in the city".
The investigation into the car crash had revealed that the juvenile's blood samples were replaced with those of his mother.
The roles of Dr Ajay Taware, head of the forensic department, Medical Officer Shreehari Halnor, and a hospital staffer came under scrutiny.
While the mother is currently out on bail, the juvenile’s father, Sassoon Hospital doctors Taware and Halnor, staffer Atul Ghatkamble, two middlemen, Ashpak Makandar and Amar Gaikwad, and others remain in jail for the alleged blood sample swap.
