The Supreme Court on Monday put a stay on the Madras High Court order directing Tamil Nadu government to waive loans of all drought-hit farmers.
The Madras High Court had directed the Tamil Nadu government to waive off all agricultural loans taking cognizance of their 23-day protest at Jantar Mantar in New Delhi.
The Madurai bench of the Madras High Court had also ordered cooperative societies and banks to waive off the loans of the farmers and not recover their dues.
The Tamil Nadu government, however, had filed a petition in the apex court against the Madras High Court order.
The High Court noted that the state's financial situation was grim and it was single-handedly shouldering the debt burden in a drought year in which farmers were committing suicide.
The High Court also suggested that the Centre should come forward to extend financial help to Tamil Nadu during the difficult situation.
A division bench comprising Justices S Nagamuthu and M V Muralidaran gave the order of waiving the loans while allowing a petition by the National South Indian River Interlinking Agriculturists Association.