Ernakulam: The Kerala High Court on came down heavily on the Union government for its stand on the non-waiver of loans taken by victims of the 2024 Wayanad landslides, observing that the Centre had failed the people in their time of crisis, reports Live Law
A division bench comprising Dr Justice A K Jayashankaran Nambiar and Justice Jobin Sebastian said it would pass an interim order staying all loan recovery actions against the victims.
During the hearing, Additional Solicitor General of India A R L Sundaresan, representing the Centre, submitted that there was still ambiguity regarding which ministry should take a final decision on the issue. The Advocate General informed the court that the Ministry of Home Affairs had filed an affidavit reiterating that it could not waive the loans. Central government counsels argued that there were limitations imposed by Reserve Bank of India (RBI) regulations on granting such waivers.
However, the bench dismissed that reasoning, asking pointedly,
“The Union of India has limitation by an RBI circular? Vis-à-vis the RBI, what is the status of the Union of India? It is not that you are powerless in this matter; it is basically an unwillingness to act. Don’t hide. In moments like this, the Union government has failed the people. Enough is enough. We don’t need the Union’s charity.”
The court noted that state-controlled banks had already written off the loans, while several nationalized and private banks had not followed suit.
“Central Bank, Federal Bank, HDFC, Canara Bank, State Bank of India — give us a list of those banks which are controlled by the Union. We will make them parties here and issue notices,” the bench said.
The judges said they would stay recovery proceedings for now and warned that the Centre’s “step-motherly attitude will not run”.
The High Court is hearing a suo motu case initiated after massive landslides struck Wayanad on July 30, 2024, killing dozens and displacing hundreds. The court has since been closely monitoring the rehabilitation measures taken by the state and the extent of assistance from the Centre.