Daijiworld Media Network - Kochi

Kochi, Oct 9: The Kerala High Court on Wednesday sharply criticized the Union government for “virtually failing” the victims of the 2024 Wayanad landslides by not exercising its powers to waive their loans. The bench, comprising Justices A K Jayasankaran Nambiar and Jobin Sebastian, described the Centre’s stand as “unfortunate” and “exasperating.”

The court directed that all recovery actions by banks against the Wayanad landslide victims be kept in abeyance until the final disposal of a public interest litigation (PIL) initiated by the court itself, aimed at improving disaster prevention and management in Kerala. Observing that banks were resorting to “Shylockian methods” to recover loans, the bench said it could not remain a silent spectator to such practices.

The court noted that under Article 73 of the Constitution, the Centre has vast powers and should have acted responsibly to protect the fundamental right to life of the landslide victims, especially since it had categorised the calamity as ‘severe’. The bench highlighted that while the Union government approved Rs 707 crore in aid to Assam and Gujarat for 2024 flood and landslide relief, similar support was not extended to Wayanad, indicating an “unwillingness” to assist the victims.

Emphasizing that federal principles do not allow differential treatment of citizens, the court said asking victims to repay loans when the property offered as collateral no longer exists was “nothing short of an affront to their dignity.” It underlined that fairness in state action is a fundamental feature of the Constitution and stressed that the banks should not override the rights of victims struggling to restore normalcy.

The High Court impleaded 12 banks, including SBI, Canara Bank, Central Bank of India, Punjab National Bank, and Bank of Baroda, and ordered that any loan recovery actions be suspended until the case is resolved. The banks were allowed to seek modification of the order by filing affidavits stating whether they were willing to waive loans wholly or partially, or providing justification based on loan terms. The matter has been listed for further hearing on October 29.

The landslide on July 30, 2024, in Mundakkai and Chooralmala devastated the region, claiming over 200 lives, leaving hundreds injured, and 32 people still missing.