Bihar Government Cracks Down on Defaulter PACS, Crores Recovered After FIR

Sitamarhi, Bihar: The Bihar government has intensified action against defaulter PACS (Primary Agricultural Credit Societies) chairpersons, recovering large sums of unpaid loans. In Sitamarhi district alone, action has been taken against 33 PACS chairpersons who allegedly defaulted on more than ₹10 crore in loans.

No Relief for Defaulters

The state government has made it clear that no leniency will be granted to PACS declared as defaulters. Despite repeated warnings, these PACS chairpersons failed to repay loans taken from cooperative banks. The Bihar Cooperative Department has issued directives to take action against all such defaulters across the state.

Decade-Old Defaults Trigger Action

Loans are provided to PACS for procurement of paddy and wheat from cooperative banks. Around 10–12 years ago, hundreds of PACS, including 33 in Sitamarhi, received substantial loans but failed to return them. Notices were repeatedly issued, yet the chairpersons showed no interest in repayment. Following departmental directives, the Sitamarhi Cooperative Department first declared the 33 PACS chairpersons as defaulters and subsequently filed FIRs against them. Legal action has also been initiated for recovery of dues through auction proceedings.

Outstanding Amounts

The total pending amount for these 33 PACS chairpersons stands at ₹10,31,12,042, including principal of ₹8,39,03,149 and interest of ₹1,92,08,893. So far, ₹1,55,07,489 has been recovered, leaving ₹8,76,04,553 outstanding. FIRs have been registered against 27 chairpersons, while auction proceedings have been initiated against 19. Notable defaulters include Ram Saral Dubey (Bhasar Machhhan Dakshini PACS), Md. Mulim (Mehasaul Purvi PACS), Khushboo Kumari (Rasulpur PACS), Meena Devi (Rampatti PACS), and others across Sitamarhi district.

High Court Appeals

Several PACS chairpersons have approached the Patna High Court seeking relief. Mithila Bihari Yadav, chairperson of Bachopatti Narhya PACS, stated that while everyone knows bank funds cannot be misappropriated, the FIRs were filed despite millers, who were supplied paddy in advance, failing to deliver rice. Similarly, Manju Devi of Belahia PACS said FIRs were filed against her regarding recovery proceedings.

Sanjeev Kumar Singh, MD of the Cooperative Bank, confirmed that all actions against defaulter PACS chairpersons were carried out in accordance with regulations to recover pending loans.