Margin money provided by the government will be merged into accounts if borrower will close loan account and take mudra loan in PMEGP

Grievance Status for registration number : GOVUP/E/2023/0036379

Grievance Concerns To

Name Of Complainant

Mahesh Pratap Singh alias Yogi M. P. Singh

Date of Receipt


Received By Ministry/Department

Uttar Pradesh

Grievance Description

Here I am providing a model proof of corruption is being faced by the borrowers. Here we consider the example of Sudarshan Maurya S/O Brij Lal Maurya who paid interest on subsidy of more than three months even after providing subsidy letter of deputy commissioner industry, district industries centre Mirzapur to Branch Manager.

प्रकरण में सम्बंधित से आख्या प्राप्त कर निस्तारण हेतु प्रेषित है आख्या संलग्न है आपका प्रकरण इस कार्यालय से संबंधित नहीं है

Who will pay the detriment suffered by Sudarshan Maurya by paying the interest of four months with mental and physical harassment as well. Here with details are attached.

The matter concerns the deputy commissioner industry, district industries centre Mirzapur addressed to Branch Manager, State Bank of India, District-Mirzapur. Handwritten. Application date-04/11/2022 submitted to Branch Manager. Unfortunately, no action was taken by the branch manager concerned.

Letter number-1250 dated-03 November 2022 in regard to adjustment of margin money claim of the applicant attached as the first page of the attached PDF document to the grievance.

According to concerned staff of the State Bank of India, the margin money provided by the government will be merged into your accounts if you will close this account and take mudra loan to proceed with your business activities.

But the applicant is no more interested with the cumbersome and cryptic proceedings of the bank.

Now the applicant wants to draw the kind attention of the Honourable Sir to the circular of Khadi and Village Industries Commission 3, Irla Road, Vile Parle West, Mumbai, 56

Circular number-PMEGP/MM subsidy/Adjustment/2012-13/23 dated 07 May 2012

Vide last para of attached PDF document which states as

The average working capital availment should be calculated over a period beginning with the first withdrawal of the cash credit and ending on the completion of the three year period from the date of the first disbursement of the loan i.e. term loan or date of ending of lock-in period whichever is earlier.

This categorically implies that now they must merge the margin money in the term loan account of the applicant.

It is most unfortunate that the State Bank of India is run by arbitrary rules and regulations made by its administrative staff for its own convenience.

Moreover, they have deducted monthly interest i.e. M.I. of amount Rs.8200 from my cash credit account arbitrarily with adjusting the margin money into my term loan account. It reflects the tyranny and arbitrariness in the working of the state bank of India which only promotes corruption, and its sole victims are innocent gullible consumers of the bank. Entire relevant documents are attached to the grievance.

Grievance Document

Current Status

Case closed   

Date of Action




Reply Document




Rating Remarks

Government of Uttar Pradesh is the facilitator of the scheme sponsored by our prime minister Narendra Damodar Das Modi for providing employment to the youth of the country who are wandering in search livelihood and their families are on the verge of hunger. Still no outcome only communications exchange Various borrowers are complaining about the demand of illegal gratification in order to merge the subsidy by the concerned public staff and if the convenience charges are not made they are procrastinating in merging subsidy to their accounts. Please provide the transparency mechanism adopted by the accountable staff in order to curb such illegal practices. This is my humble request to the concerned staff to ensure the reach of the public assistance to the needy in a transparent and accountable way. The delay in the merging of the subsidy causes extra burden of the interest on the borrowers which must be avoided by the accountable staff of the district industrial management department.

Appeal Details

Appeal Number

Date of Receipt

Appeal Text

Current Status

Officer Concerns To

Officer Name

Shri Bhaskar Pandey (Joint Secretary)

Organisation name

Government of Uttar Pradesh

Contact Address

Chief Minister Secretariat , Room No. 321, U.P. Secretariat, Lucknow

Email Address

Contact Number


To see the attached document to the grievance, click on the link

Beerbhadra Singh

To write blogs and applications for the deprived sections who can not raise their voices to stop their human rights violations by corrupt bureaucrats and executives.

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