The Gwalior district administration on Wednesday auctioned a trader's house as a stringent action against default of payment to the tune of Rs 40 lakh to paddy farmers. The administration also plans to auction a piece land attached to the house and will divert proceeds towards farmers’ bank accounts.
District collector Kaushlendra Vikram Singh told the media on Wednesday that 23 farmers had complained to the SDM against the defaulting trader and a reconciliation board was established under the new farm law. As the board could not settle the matter, the concerned SDM ordered attachment of properties of the fugitive trader.
Accordingly, Singh said the trader's house was auctioned for Rs 1.45 lakh and the amount has been paid to the aggrieved farmers. On Thursday, the process of auctioning the land belonging to the trader will begin and the proceeds will be used to settle the dues of the farmers concerned, said the collector.
Earlier this month, the administration had lodged an FIR against the trader who had fled soon after buying the crops from the local farmers.
The trader Balram Singh Parihar from Bajna village in Bhitarwar tehsil in Gwalior had purchased paddy worth Rs 40 lakh from 42 farmers but left the village with his family before releasing the payments.
Locals further alleged that he had borrowed cash from some farmers for business purposes and also ran a chit fund.
The trader had fled the village on December 3 with his wife and kids after buying paddy in the village under Belgada police station.
The trader had established his goodwill as he used to collect small amounts of money from the locals and helped them out in need, said the villagers.