Kerala High Court Serves Ultimatum To Centre To Decide On Loan Waiver For Wayanad Landslide Victims

The Kerala High Court on Wednesday issued a stern ultimatum to the Central government, granting it one final opportunity to convey its decision on waiving off loans taken by victims of the Wayanad landslides.

A division bench of Justices A.K. Jayasankaran Nambiar and Jobin Sebastian was hearing a suo motu case initiated following the devastating landslide that struck Wayanad on July 30, 2024.

When the matter came up, the court inquired about the Centre's position on the loan waiver.

The Additional Solicitor General, appearing for the Centre, informed the bench that no final decision had been communicated to him yet, but assured that he would update the court by September 10.

Taking note of the prolonged delay, the bench ordered: "Post these matters on 10th September. This is the last chance for the Central government to revert to this court regarding their decision on the loan waiver."

In previous hearings, the ASG had explained that the matter had moved from the Ministry of Home Affairs to the Department of Expenditure and subsequently to the Finance Ministry, where it is pending further instructions.

This is not the first time the court has expressed dissatisfaction with the Centre's approach.

In April, the High Court had criticised the Union government and the National Disaster Management Authority for inaction and urged them to emulate Kerala Bank's example, which wrote off Rs 5 crore worth of loans owed by affected residents.

According to court records, 12 banks collectively hold 3,220 accounts in the landslide-hit region, with total exposure amounting to Rs 35.30 crore.

The bench had earlier reminded the Centre of its responsibility as the chief executive in a welfare state, urging it to aid citizens who lost their livelihoods, instead of allowing banks to adopt a “Shylockian” approach towards borrowers.

The July 30, 2024, disaster decimated four villages, injured hundreds, claimed over 200 lives, and left 32 people still missing.

Survivors continue to face financial hardship as they struggle to rebuild their lives.

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