No coercive steps for loan recovery from Wayanad landslide survivors: Kerala HC

The Kerala High Court on 3 March, Monday, ordered the Kerala government to direct the State Level Bankers' Committee (SLBC) not to take any provocative steps against any Wayanad landslide victim who has defaulted on bank loans — till the matter of a loan waiver is decided by the central government.

The division bench of Justice A.K. Jayasankaran Nambiar and Justice S. Easwaran gave the order when hearing the suo motu case initiated by the High Court in the aftermath of the large-scale landslides that hit Wayanad on 30 July 2024.

The court, which has been proactively monitoring the rehabilitation activities undertaken by the state and the support offered by the Centre since then, said, “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.”

Additional solicitor general A.R.L. Sundaresan, the counsel for the Centre, informed the court that the chief minister has held a meeting with the SLBC, which has identified areas where loans can be waived and this report will be forwarded to the National Level Association Committee.

Sundaresan also informed the court that the Centre will take a decision on this after considering the opinion of the National Level Committee.

He further pointed out that this will be done in a period of three weeks.

The Court then sought clarification on the deadline fixed by the Centre on the completion of projects for rehabilitation of victims.

At the moment, the Centre has 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 31 March.

But the Court pointed out that completion of the project within the time limit is impossible and enquired whether 31 March was fixed as it is the closing date of the financial year.

Then the court asked Sundaresan 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.

Wayanad was struck by a landslide on 30 July 2024, devastating four villages and claiming 254 lives. Prime minister Narendra Modi visited the affected areas shortly afterwards and assured the people that the Centre would assist, asking the state government to submit a detailed request for aid.