Take No Coercive Steps Against Wayanad Landslide Victims Who Defaulted On Loan Till Centre Decides On Waiver: Kerala HC Directs State

The Kerala High Court on Monday (March 3) ordered the State to direct the State Level Bankers' Committee (SLBC) not to take any coercive steps against any Wayanad landslide victim who has defaulted on bank loans, till the matter of loan waiver is decided by the Central Government.“.. 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.”The Division Bench of the Court comprising Justice A. K. Jayasankaran Nambiar and Justice Easwaran S. was hearing the suo motu case initiated by the High Court in the aftermath of large-scale landslides that hit Wayanad in July 30, 2024. The Court has been actively monitoring the rehabilitation activities undertaken by the State and the support offered by the Centre since then.Advocate ARL Sundaresan (ASG) who appearing on behalf of the Centre informed the Court that as per his information, the Chief Minister has held a meeting with the State Level Association of Banks and has identified areas where loan can be waived. This report will be forwarded to the National level Association. He informed the Court that the Centre will take a decision on this after considering the opinion of the National Level Committee. He submitted that this will be done in a period of 3 weeks.The Court has also sought clarification on the deadline fixed by the Centre on the completion of projects for rehabilitation of victims. The Centre had sanctioned a long term interest free loan of Rs. 529.50 Crore to implement certain projects related to the rehabilitation of landslide victims but has directed that the money should be utilised before 31st March. The Court observed that completion of project within the time limit is an impossibility. The Court enquired whether 31st March was fixed as it is the closing date of financial year. The Court asked the ASG to get a clarification as to whether the Centre just requires the funds to be transferred to the project implementing agency before the said date.The matter is posted after 2 weeks.Case Title: In Re: Prevention And Management Of Natural Disasters In Kerala V State Of KeralaCase Number: WP(C) 28509/ 2024 & Connected Cases

Take No Coercive Steps Against Wayanad Landslide Victims Who Defaulted On Loan Till Centre Decides On Waiver: Kerala HC Directs State

Manju Elsa Isac

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