Thiruvananthapuram Jan 29 With the Assembly elections drawing closer, the Pinarayi Vijayan Cabinet on Wednesday approved a major relief measure for survivors of the Mundakkai–Chooralmala disaster in Wayanad, deciding to take over and settle the outstanding loans of those officially identified as disaster victims.
Loans amounting to over Rs 18.75 crore will be cleared, covering 1,620 loans taken by 555 beneficiaries.
Revenue Minister K. Rajan said the government would assume full responsibility for the liabilities, with the required funds being met from the Chief Minister’s Distress Relief Fund (CMDRF).
He stressed that the decision was not a mere write-off but a complete takeover of the debt burden by the State.
As part of the decision, the government will reimburse Rs 93 lakh to Kerala Bank, which had already written off loans of affected borrowers.
All loans of those formally declared disaster-affected will be settled in full, the Minister said.
The Cabinet decision comes against the backdrop of the July 30, 2024, disaster, which devastated four villages in Wayanad, injured hundreds, claimed over 200 lives, and left 32 people still missing.
The tragedy triggered widespread demands for comprehensive relief, including loan waivers for survivors who lost homes, livelihoods and family members.
Minister Rajan criticised the Central Government’s stance, alleging an “inhumane approach” towards the victims.
He said the Centre’s refusal to waive loans amounted to a political vendetta, but expressed hope that procedural hurdles could be overcome and the relief process completed before the elections.
The issue had earlier drawn sharp observations from the Kerala High Court, which had taken up the matter suo motu and expressed strong disappointment with the Centre for declining to extend loan waiver relief to the affected population.
The court had underlined the extraordinary nature of the disaster and the need for a humanitarian response.
The government’s move is being seen as a significant political and administrative intervention at a time when disaster rehabilitation remains a key public concern in the hill district.
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