Why is the Centre Delaying the Loan Waiver for Wayanad Landslide Victims?
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Synopsis
The Central government has sought more time for a decision on loan waivers for Wayanad landslide victims, raising concerns about accountability and timely assistance. With the Kerala High Court's involvement, the urgency of the situation becomes evident as families await relief. Will the Centre step up and provide the necessary aid?
Key Takeaways
- Central government delays loan waiver decisions.
- Kerala High Court urges timely action.
- Precedent set by Kerala Bank's loan waivers.
- Over 200 lives lost in the landslide disaster.
- State government initiates rehabilitation efforts.
Kochi, Sep 10 (NationPress) The Central government has again requested additional time to make a decision regarding the waiver of bank loans for those affected by the Mundakkai-Chooralmala landslide disaster in Wayanad. When this issue was presented to the Kerala High Court, the Union government sought an extension of three weeks to submit its response. They indicated that there was confusion about which ministry was responsible for making the final decision, which has resulted in delays.
The Court reminded the Centre that Kerala Bank had already waived loans for families affected by the disaster, setting a precedent that could be followed by other banks.
The High Court emphasized that this matter cannot be drawn out indefinitely, instructing that the petition will be revisited in three weeks.
The call for loan waivers for victims has been longstanding, with survivors and families of those who perished urging both state and Central authorities for immediate assistance.
In April, the High Court had criticized the Union government and the National Disaster Management Authority for their lack of action, suggesting they follow the lead of Kerala Bank, which had written off Rs 5 crore in loans owed by affected individuals.
Records indicate that 12 banks hold a total of 3,220 accounts in the landslide-affected area, with an overall exposure of Rs 35.30 crore.
The bench previously reminded the Centre of its obligation as the chief executive in a welfare state, urging it to support citizens who have lost their means of livelihood, rather than allowing banks to take a “Shylockian” stance towards borrowers.
The devastating event on July 30, 2024, destroyed four villages, injured hundreds, resulted in over 200 deaths, and left 32 individuals unaccounted for.
In March, as part of the state government’s Wayanad rehabilitation programme, Chief Minister Pinarayi Vijayan laid the foundation for a project aimed at providing 1,000 sq-ft homes on seven cents of land to 402 selected beneficiaries.
During his address, CM Vijayan criticized the Union government for its inadequate disaster relief, noting that the state received no Central assistance and only had loans to manage.
Point of View
The ongoing delay in providing relief to Wayanad landslide victims reflects a broader systemic issue within government operations. It is essential for the authorities to prioritize the welfare of citizens affected by natural disasters. We must advocate for a more responsive and accountable approach to disaster management and support.
NationPress
10/09/2025
Frequently Asked Questions
What is the current status of loan waivers for Wayanad landslide victims?
The Central government has requested additional time from the Kerala High Court to finalize its decision regarding the loan waivers for victims of the Wayanad landslide disaster.
How has the Kerala High Court responded to the delays?
The Kerala High Court has expressed concern over the delays and has instructed that the matter be revisited in three weeks, emphasizing the need for timely action.
What precedent has been set regarding loan waivers?
The Kerala Bank has already waived loans for disaster-affected families, serving as a model for other financial institutions to follow.
What are the estimated financial implications of the disaster?
Twelve banks hold 3,220 accounts in the affected region, with a total exposure of approximately Rs 35.30 crore.
How did the state government respond to the disaster?
The state government initiated a rehabilitation program to provide housing to victims, with Chief Minister Pinarayi Vijayan laying the foundation for new homes.
