Farmers Protest Against UCO Bank in Karnal Over Loan Dispute

Members of the Bharatiya Kisan Union (BKU) staged a strong protest on Thursday against UCO Bank in Karnal, Haryana, accusing the lender of exploiting farmers through exorbitant loan recovery demands. Carrying an effigy symbolising the bank, the protesting farmers marched from Kisan Bhawan to the regional office via Ghanta Ghar Chowk, where they raised slogans and eventually set the effigy ablaze; AmarUjala reported.

The protesters alleged that despite repaying more than double the principal loan amount, a farmer from Kohand village continues to be treated as indebted, with the bank now demanding nearly four times the sum borrowed. In addition, threats of seizing his six-acre farmland have been made. The matter has prompted the BKU to schedule a meeting with Deputy Commissioner Uttam Singh on 16 September, when a delegation will formally raise the issue.

At a meeting in Kisan Bhawan chaired by former district president Surender Ghumman, farmer Madan Pal Rawal narrated his predicament. His father, Hathirath Prakash, had borrowed approximately ₹1.47 crore from UCO Bank’s Panipat branch in 2013 to establish a poultry farm. After his father’s death in 2016, Madan Pal continued repayments, clearing around ₹2.35 crore by 2020.

However, the outbreak of the COVID-19 pandemic devastated poultry farms across the region, including Rawal’s, leaving him unable to maintain regular repayments. According to the BKU, UCO Bank subsequently raised its demand to an inflated ₹5.80 crore, far exceeding the original borrowing.

BKU state president Ratan Mann criticised the double standards of government policy, pointing out that while the state writes off debts owed to private moneylenders, it simultaneously authorises banks to auction off the homes and farmlands of struggling farmers. “This will not be tolerated. If necessary, the agitation will be intensified. Under no circumstances will we allow Madan Pal’s land to be auctioned,” he warned.

The BKU has announced that a 12-member delegation will meet the Deputy Commissioner on 16 September to seek an immediate resolution. The protest saw wide participation, with leaders including Mahtab Kadian, Shyam Singh Mann, Surender Sagwan, Dhanetar Rana, former DSP Deshraj Singh, Balbir Tevetia, Dilawar Singh, Yashpal Rana, Joginder Jhinda, Neki Ram, Ram Dureja, Ram Phal Narwal and Ranbir Katlahedi among others in attendance.

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.