The Maharashtra cabinet on Tuesday approved the 'Punyashlok Ahilyadevi Holkar Shetkari Karja-mukti Yojana 2026' to provide farm loan waiver of up to ₹2 lakh for eligible farmers, as the state faces allegations of massive mismanagement in another welfare scheme. The ₹36,585 crore farm loan waiver scheme will benefit 56 lakh farmers and comes amid mounting criticism over the ₹24,300 crore loss allegedly incurred through the Ladki Bahin Yojana. Chief Minister Devendra Fadnavis, who also holds the finance portfolio, first announced the loan waiver on March 6 when he presented Maharashtra's budget in the state assembly. The decision was taken at a cabinet meeting chaired by Chief Minister Devendra Fadnavis, with the scheme having no landholding criterion for eligibility, making it accessible to all qualifying farmers regardless of farm size.
Under the waiver component, farmers whose total outstanding short-term crop loans, including principal and interest, are up to ₹2 lakh will be eligible for complete debt relief. As reported by the Chief Minister's Office, the loans must have been disbursed between April 1, 2019, and March 31, 2025, remained overdue as of September 30, 2025, and unpaid till March 31, 2026. Farmers whose dues exceed ₹2 lakh will be covered under the one-time settlement (OTS) component, requiring them to clear the amount above ₹2 lakh before becoming eligible for the ₹2 lakh waiver. These borrowers have been given time until March 31, 2027, to deposit their share of the outstanding amount. The scheme will cover loans availed from nationalised banks, private banks, regional rural banks, district central cooperative banks and primary agricultural credit societies.
Under the incentive benefit component, farmers who have repaid crop loans within the prescribed period in at least two of the three financial years from 2022-23 to 2024-25 will receive an incentive grant of up to ₹50,000. According to the Chief Minister's Office, eligible beneficiaries who have taken out crop loans in the current financial year must also repay those loans on time. Additionally, farmers with overdue amounts exceeding ₹50,000 can avail of a grant of ₹50,000 after paying the balance amount above that threshold, enabling them to become debt-free. These beneficiaries also have until March 31, 2027, to make the required payment. The scheme consists of three components: a loan waiver, a one-time settlement, and an incentive, with farmers who have been repaying their loans eligible for the ₹50,000 incentive. The beneficiaries of the Mahatma Jyotirao Phule Shetkari Karjamukti Yojana, 2019, who subsequently defaulted on fresh crop loans, would be eligible for loan relief of up to ₹50,000, subject to certain conditions.
The scheme will be implemented through a high-level committee headed by the Chief Secretary for monitoring purposes. As reported by the Chief Minister's Office, a separate committee headed by the Additional Chief Secretary (Finance) will negotiate with nationalised, private and regional rural banks regarding settlement of non-performing agricultural loans and determination of concessions to be extended by lenders. Aadhaar authentication and registration on the AgriStack platform will be mandatory for beneficiaries, while a dedicated digital portal will be developed for implementation. Since the state is currently under the Model Code of Conduct for the upcoming legislative council elections on June 18, the government sought prior clearance from the Election Commission, which permitted the announcement since the policy announcement had already been made in the budget speech. The cabinet hailed the waiver plan as a major relief measure for farmers, with ministers applauding the move during the meeting and terming it a historic decision benefiting lakhs of cultivators.
The ₹24,300 crore loss allegedly incurred through the Ladki Bahin Yojana has emerged as a major scandal, with the NCP (SP) calling it one of Maharashtra's biggest scandals. According to NCP spokesperson Mahesh Tapase, nearly 81 lakh beneficiaries out of the total 2.47 crore recipients were found ineligible after funds had already been disbursed. Those found ineligible include approximately 14,000 men, nearly 10 lakh taxpayers, 5 lakh government employees, and several lakh vehicle owners. The scheme, launched in August 2024 under the Eknath Shinde government, provided ₹1,500 per month as financial aid to women in the 21-60 age group with annual family income limit of ₹2.5 lakh. The Opposition Congress has expressed concerns about the implementation, stating that around 80 lakh women were found ineligible months after the roll-out, questioning whether the government's assertion that 56 lakh farmers would benefit from loan waiver should be viewed cautiously.
