Key Points
Kerala HC stops bank actions against Wayanad landslide loan defaulters
Centre considering comprehensive loan waiver proposal
PM Modi earlier assured assistance to affected regions
The Division Bench of Justice A. K. Jayasankaran Nambiar and Justice S. Easwaran gave the order when hearing the suo motu case initiated by the High Court in the aftermath of large-scale landslides that hit Wayanad on July 30, 2024.
The court which has been proactive monitoring the rehabilitation activities undertaken by the state and the support offered by the Centre since then said, "We deem it appropriate to direct that till such time as the decision of the Central government on the aspect of loan waiver is communicated to this Court, the state government shall ensure that no coercive steps are taken for recovery of loan amounts from those affected by the landslides," said the court.
Additional Solicitor General ARL Sundaresan, the counsel for the Centre, informed the court that the Chief Minister has held a meeting with the SLBC, which has identified areas where loans can be waived and this report will be forwarded to the National Level Association Committee.
Sundaresan also informed the court that the Centre will take a decision on this after considering the opinion of the National Level Committee.
He further pointed out that this will be done in a period of three weeks.
The Court then sought clarification on the deadline fixed by the Centre on the completion of projects for rehabilitation of victims.
At the moment, the Centre has sanctioned a long term interest free loan of Rs 529.50 crore to implement certain projects related to the rehabilitation of landslide victims but has directed that the money should be utilised before March 31.
But the Court pointed out that completion of the project within the time limit is impossible and enquired whether March 31 was fixed as it is the closing date of the financial year.
Then the court asked Sundaresan to get a clarification as to whether the centre just requires the funds to be transferred to the project implementing agency before the said date.
Wayanad was struck by a landslide on July 30 last year, devastating four villages and claiming 254 lives.
Prime Minister Narendra Modi visited the affected areas shortly afterwards and assured that the Centre would assist, asking the state government to submit a detailed request for aid.
