Kochi: The Kerala High Court on Tuesday came down heavily on the Central Government for refusing to waive loans taken by victims of the Wayanad landslide disaster, calling the Centre’s stance “disturbing, insensitive, and lacking empathy.”
The Centre told the court that loan write-offs were beyond its jurisdiction, arguing that only the respective bank boards have the authority to make such decisions. However, the High Court rejected this justification, saying the government’s response reflected a failure of compassion and accountability.
“If banks are unwilling to waive loans, they should state it openly instead of hiding behind the claim that the Centre lacks authority,” the court remarked sternly. “If this is the Centre’s approach, the court will be compelled to take a tougher stance.”
The division bench of Justice A.K. Jayasankaran Nambiar and Justice Jobin Sebastian made the observations while hearing a suo motu case related to the Mundakkai–Chooralmala landslide that struck Wayanad on July 30, 2024. The judges also hinted at issuing an interim stay on loan recovery actions against the affected families.
Challenging the Centre’s claim of limited powers, the court questioned whether the issue was truly about authority or simply unwillingness to act. “The Central Government should not fail its people in times of disaster. What is needed now is not charity but responsibility,” the court asserted.
The High Court further directed the Centre to submit details of all banks under its control, stating that these banks would be made parties to the case. It also pointed out that state-controlled banks have already written off loans for affected victims, urging the Union Government to show the same level of concern.
Concluding its observations, the court instructed the Centre’s counsel to convey the court’s criticism and concerns to the government and reconsider its position in light of the severe humanitarian crisis faced by the Wayanad disaster victims.
