Election Commission Halts Rythu Bandhu Scheme Disbursements: Setback for KCR

In a significant development, the Election Commission (EC) has instructed the Telangana government to suspend disbursements under the Rythu Bandhu Scheme, dealing a setback to K Chandrashekar Rao's Bharat Rashtra Samithi (BRS). This decision comes after a state minister breached the model code of conduct by publicly announcing financial aid for farmers under the scheme.
The EC, on Monday, rescinded the permission granted to the Telangana government to provide financial assistance to farmers for rabi crops under the Rythu Bandhu Scheme. “There shall be no disbursement under the Scheme till the Model Code of Conduct in the State of Telangana ceases to apply in," the EC ruling said all its forms."
Initially, the election panel had allowed the KCR-led Telangana government to disburse the rabbi installment during the model code of conduct period, subject to certain conditions. One of these conditions explicitly forbade publicizing the disbursement during the poll code, given the upcoming elections in Telangana on November 30. However, a state minister's public announcement led to the withdrawal of the EC's permission.
Ahead of this decision, the Congress had urged the Chief Election Commissioner to impose restrictions on the BRS, preventing any mention of Rythu Bandhu disbursements in their poll campaign. In a letter to CEC Rajiv Kumar, the Congress accused BRS leaders of using the EC's nod as a "tool to influence" voters falsely. BRS leaders, in turn, blamed the Congress for allegedly obstructing the disbursement, a claim disputed by the EC.
Following the EC's clearance on November 24, a press release from the state government outlined revised plans. Due to bank holidays on November 25, 26, and 27, and the EC's directive against money distribution on November 29 and 30, the funds would be deposited in farmers' bank accounts using the Direct Benefit Transfer technique, bank accounts.
The Rythu Bandhu scheme, also known as the Farmer's Investment Support Scheme (FISS), is a welfare program initiated by the Telangana government in 2018. It aims to support farmers by providing ₹5,000 per acre of land as farm investment for both kharif and rabi harvests, benefiting 58 lakh farmers in the state. This unique scheme involves direct cash payments to beneficiaries and was launched by Telangana CM K Chandrashekar Rao in 2018, with a budget allocation of ₹12,000 crore from the state budget.