Kerala High Court Displeased with Centre's Loan Waiver Stance for Wayanad Landslide Victims
Click to start listening
Synopsis
The Kerala High Court expressed its disappointment over the Central government's refusal to waive loans for Wayanad landslide victims. The judges highlighted the need for support, citing past loan waivers. The court has directed further action on the issue of loan waivers and scheduled follow-up hearings.
Key Takeaways
- Kerala High Court criticizes Central government over loan waivers.
- Wayanad landslide resulted in 254 fatalities last year.
- Previous loan waivers indicate government capability.
- One-year moratorium on loans approved for victims.
- Rs 529.50 crore allocated for rehabilitation efforts.
Kochi, March 26 (NationPress) The Kerala High Court on Wednesday conveyed its dissatisfaction regarding the Central government's refusal to waive loans for those affected by the Wayanad landslide. A catastrophic landslide occurred on July 30 last year, impacting four villages, resulting in the loss of 254 lives and extensive property damage.
A bench comprising Justices A.K. Jayasankaran Nambiar and S. Easwaran S. remarked that the Centre has previously waived loans and should not claim to lack the power to assist the Wayanad victims.
"Who considers the struggles of the borrowers?... You waived agricultural loans back in 2008-09. Hence, it is not accurate to say you are powerless regarding waivers. What if the entire agricultural land is lost due to the landslide...?" the judges expressed.
This comment was made while addressing cases pertinent to the rehabilitation of those impacted by the landslide in Wayanad.
Previously, the Court had instructed the State Level Banker’s Committee (SLBC) to refrain from taking any coercive actions against landslide victims who have defaulted on their loans until the Central government resolves the loan waiver issue.
Additional Solicitor General A.R.L. Sundaresan, representing the Centre, informed the court that the government has endorsed the SLBC's recommendation to grant a one-year moratorium on loans for the affected individuals.
He further noted that interest would accumulate on these loans during the moratorium period.
However, when the bench expressed dissatisfaction with this decision, the ASG clarified that the decision was made unanimously in a meeting that included the Kerala Chief Minister.
He also pointed out that this approach mirrored the policy adopted during the COVID-19 pandemic.
Justice Nambiar responded, stating: "The Central government cannot reference past unreasonable actions to justify current unreasonable ones. Someone must confront the reality of the circumstances."
The ASG then indicated that the authorities had thoroughly assessed all types of loans, including MSME, agricultural, housing, and commercial loans, before determining the benefits to be provided.
Ultimately, the court directed the Centre to submit an affidavit detailing the SLBC proposals, the agreements made by the Central government, and its stance on loan waivers.
The court was informed that to date, the Centre has sanctioned Rs 529.50 crore in interest-free loans for rehabilitation, and the deadline for utilizing these funds has been extended from March 31 to December 31, 2025.
In conclusion, the court scheduled further hearings for April 9 and instructed the state Finance Department to transfer the funds to the designated implementing agencies for each project, with the stipulation that the allocated funds must only be used for the specified projects.
The department is also required to issue a utilization certificate to the Centre.
