Kerala High Court urges Centre to waive loans of Wayanad landslide-affected individuals

synopsis

Wayanad landslide court

Kochi: The Kerala High Court has once again urged the central government to seriously consider waiving the loans of landslide disaster-affected individuals in Wayanad. The court emphasized that the calamity has devastated the livelihoods of the victims and cannot be treated lightly.

A division bench of the court questioned whether provisions exist to waive debts in cases categorized as national disasters. In response, the central government clarified that loan waivers fall under government policy. It also noted that any such decision would require the approval of the National Disaster Management Authority (NDMA).

The court highlighted the distinction between the temporary hardships faced during the COVID-19 pandemic and the ongoing struggles of those impacted by the Wayanad disaster. It reiterated that the damage in Wayanad has resulted in long-term livelihood destruction, making the situation more severe.

Limitations to waive loans

The central government added that while provisions for waiving loans do exist under central laws, they are subject to certain limitations. It also cited a Supreme Court ruling that prevents banks from being compelled to waive loans outright.

Responding to the court’s persistent appeals, the government stated it would consider the request if the court issued a formal order.

Concluding the session, the High Court announced its intention to issue an interim order and postponed further hearings until after the summer vacation.