Daijiworld Media Network - Kochi
Kochi, Mar 3: In a significant ruling, the Kerala High Court directed the Kerala government to instruct the State Level Bankers' Committee (SLBC) not to take any coercive actions against Wayanad landslide victims who have defaulted on their bank loans. The order remains in effect until the Central government's decision on the matter of loan waivers is made known.
The Division Bench, comprising Justice A K Jayasankaran Nambiar and Justice S Easwaran, issued the directive while hearing a suo motu case related to the devastating landslides in Wayanad on July 30, 2024. Since then, the court has been actively overseeing the rehabilitation efforts of the state and the support extended by the Centre.
In its order, the court stated, "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."
During the hearing, Additional Solicitor General ARL Sundaresan, representing the Centre, informed the court that a meeting had been held between the Chief Minister and the SLBC to identify areas where loan waivers could be applied. A report will be sent to the National Level Association Committee for further deliberation.
Sundaresan also confirmed that the Centre will make a final decision on the matter after considering the National Level Committee's opinion, with a decision expected within three weeks.
In addition to addressing loan waivers, the court sought clarification regarding the Centre's deadline for the completion of rehabilitation projects for the landslide victims. While the Centre had sanctioned a long-term interest-free loan of Rs 529.50 crore to fund these rehabilitation efforts, the funds are to be used before March 31.
However, the court raised concerns over the feasibility of completing the rehabilitation work within the set deadline. The judges inquired whether the March 31 date was merely a requirement for transferring the funds to the project implementing agency, as the timeline may be insufficient for full project completion.
The Wayanad landslide, which occurred on July 30, 2024, caused massive destruction in four villages, resulting in the tragic loss of 254 lives. In the aftermath, Prime Minister Narendra Modi visited the affected areas and assured the victims of the Centre's support, urging the state government to submit a detailed request for aid.
The High Court’s ruling aims to ensure that the victims of this natural disaster are not burdened by financial stress while awaiting the final decision on loan relief and the progress of rehabilitation efforts.