Canara Bank — Project finance

Address:	562101
Website:	nil

I am a grass root level farmer, applied for project finance in March 2015. In Feb 2016 mortgaged my full property and released a part of the loan amount, without a sanction letter with terms & conditions. Orally informed that the sanction letter would follow. In April 2016 the bank declined the project. I wrote to the bank on 10th July 2016 asking for clarifications and no reply as yet. Copy of letter produced below. What do I do?

Anjaneya Reddy
Jul 10, 2016

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Dear Sir,

Your letter of 20th June 2016. In reply I have requested for a meeting with your technical authority as they have failed to visit as per an agreement I have entered into and was made to pay an upfront fee.

I have given you a letter dated 28th June 2016 expressing my intention to bring in Rs.50 lakhs towards my contribution if you issue a sanction letter with terms & conditions.

While your issuing sanction letter is pending, surprisingly, I refer to a letter dated 29th June 2016 received from Department of Administrative Reforms and Public Grievances, Government of India, from which I understand that my proposal is declined on merits. What merits? I have not received any communication from you. My letter of 28th June 2016 is not replied. Most humiliating and insulting to a farmer entrepreneur, icon of Indian economy.

1. You have mortgaged my entire land, and you released an amount to start farm development work in February 2016, a part of my loan for Poly House Project.

Sanction letter with terms & conditions not issued even as on date.

I am made to pay an interest of Rs.43757 on 4th June 2016, without your giving reason for charging the interest in the midway, without releasing the full loan amount I have applied for and without a sanction letter with terms & conditions.

I am made to pay Rs.2, 10, 000 as visiting fee of your technical team, shockingly, after releasing a part of the loan amount to assess my proposal and now a lame excuse of merit to decline my proposal?

2. You say that the advance collection processing fee is refunded on 29th June 2016, which I could not withdraw till 5th July 2016 for reasons best known to you, though I called on you earlier and asked for refund. Further, where was the necessity to collect a considerably large amount from a farmer and then refund it, without giving interest for the period it was held by you.

3. You have declined my proposal after releasing a part of the loan amount asked for, still holding my property in your custody. I have made a number of requests, in writing and orally, to issue me a sanction letter with no response from you.

4. You will now issue me a sanction letter for the Poly House proposal and release the balance amount to enable me to carry out installation of Poly House OR release the mortgage of my entire property forth with by writing off the part amount you have released because of your discretion.

Now, about merits, I want to know your parameters of judging my merits. Assuming it is my experience and family background, I have submitted my bio data with the proposal which probably you have not looked into. However, I am sending a copy attached herewith. A 20 years experience as Farmer Entrepreneur and not a debtor, itself is a merit.

About my family:

My wife hails from an agriculturist family with thorough knowledge and involvement in agriculture, horticulture and animal husbandry, totally looking after day to day activities in my farm since marriage.

I have 4 children; the first one, a daughter, is Dairy Technologist from Bangalore University missing Gold Medal by 2 marks, offered campus employment. Refused employment offer and is working for a collaboration with a Swiss firm to set up fully Automatic Dairy Project at a cost o[censored]SD 10 millions.

the second, a son, came out first in the taluka in 10th, secured 97% in 12th and now offered an option of a seat in a reputed engineering college in Bangalore, also a seat in Mangalore, after successfully completing the entrance exams.

the third, a daughter, secured 97% in the 10th and now continuing her studies.

the fourth, a daughter, is in 8th.

It is pertinent to mention here that all the four, apart from their studies, are in the farm from the age of 12 and have deep knowledge of farming.

Yours faithfully,

Anjaneya Reddy

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