Centre seeks more time on loan waiver for Wayanad landslide victims

Kochi, Sep 10 The Central government on Wednesday has once again sought more time to decide on the waiver of bank loans taken by victims of the Mundakkai-Chooralmala landslide disaster in Wayanad.

When the matter came up before the Kerala High Court, the Union government requested an additional three weeks to file its response. The Centre explained that there was uncertainty over which ministry had the authority to take a final call on the issue, leading to delays in arriving at a decision.

The Court, however, reminded the Centre that Kerala Bank had already written off loans of disaster-affected families, setting an example that could be followed by others.

Observing that the matter cannot be prolonged indefinitely, the High Court directed that the petition would be taken up again after three weeks.

The demand for waiving loans of victims has been a long-pending one, with survivors and families of the deceased urging both the state and the Central governments for urgent relief.

In April, the High Court had criticised the Union government and the National Disaster Management Authority for inaction and urged them to emulate Kerala Bank's example, which wrote off Rs 5 crore worth of loans owed by affected residents.

According to court records, 12 banks collectively hold 3,220 accounts in the landslide-hit region, with total exposure amounting to Rs 35.30 crore.

The bench had earlier reminded the Centre of its responsibility as the chief executive in a welfare state, urging it to aid citizens who lost their livelihoods, instead of allowing banks to adopt a “Shylockian” approach towards borrowers.

The July 30, 2024, disaster decimated four villages, injured hundreds, claimed over 200 lives, and left 32 people still missing.

Incidentally, in March this year, on the part of the state government’s Wayanad rehabilitation programme, Chief Minister Pinarayi Vijayan laid the foundation stone for the project, which aims to provide 1,000 sq-ft houses on seven cents of land each to 402 select beneficiaries.

During his speech, CM Vijayan criticised the Union government for failing to provide adequate disaster relief as the state received no Central aid and had only loans that the state must repay.

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