Kerala HC Criticizes Government's Loan Waiver Inaction for Wayanad Landslide Victims

The Kerala High Court slammed the Union government and NDMA for not instructing banks to waive off loans for Wayanad landslide victims, despite its 'severe' classification. The court emphasized NDMA's powers under the Disaster Management Act and highlighted the Kerala Bank's supportive stance, urging other banks to follow suit.

The Kerala High Court sharply criticized the Union government and the National Disaster Management Authority (NDMA) for their failure to direct banks to waive the loans of Wayanad landslide victims, calling it a 'complete abdication' of duty.

While acknowledging that the Reserve Bank of India lacks authority to compel loan write-offs, the court emphasized that the NDMA is empowered under the Disaster Management Act to take such action. Despite the 'severe' disaster classification, no attempts were made to exercise this power.

The court noted that Kerala Bank waived loans of affected persons and urged other banks to follow suit. The government's affidavit suggested only loan restructuring, leading the court to call for deliberation on loan waivers under the Act.

(With inputs from agencies.)