'Centre has failed people of Kerala': HC on Wayanad disaster loan refusal

The Kerala High Court slammed the Centre for refusing to waive loans for Wayanad landslide victims and ordered banks to stop recovery until further notice

The Kerala High Court on Wednesday voiced strong disappointment over the Central government's refusal to waive loans for people affected by the Wayanad landslides of 2024, Bar and Bench reported.

 

On July 30, 2024, heavy monsoon rains triggered devastating landslides in Kerala's Wayanad district, resulting in more than 200 deaths, with 32 people still reported missing.

 

A Division Bench of Justice A K Jayasankaran Nambiar and Justice Jobin Sebastian said the central government has “failed the people of Kerala” and made it clear that the state does not need the Centre's charity.

 

"Please tell the Union government it has failed the people of Kerala. We had made it very clear that it is not a situation where the union is powerless to act. By this affidavit, you've clearly shown again that you are hiding behind this power argument, you're saying that you are powerless to act. Why is that being done?" the court told the government lawyer.

 

 

The Bench was referring to the Central government’s argument that there is no legal provision allowing the waiver of bank loans for people affected by natural disasters.

 

Rejecting this, the court called the stance “bureaucratic babble".   

 

  "This is just bureaucratic babble. It is not about whether the Union can act, but whether they are willing to act. If you are unwilling to act, have the courage to say it. Who are you trying to fool?" the Bench asked.

 

The court urged the government to openly admit if it was unwilling to help, rather than hiding behind legal technicalities. "Please tell your government that these kinds of tactics are not going to carry the day. If they have the courage, let them say that they are not willing to help. But at least the people should know that when it comes to moments like these, the Union government has failed the people," Justice Nambiar said.

 

'Kerala does not need Union charity'

 

The Bench was hearing a suo motu case it initiated to monitor rehabilitation efforts in Wayanad. During the hearing, it highlighted news reports showing large funds sanctioned by the Central government for Assam and Gujarat floods in 2024, disasters which were not even classified as severe, the news report said.

 

The court made it clear that Kerala does not depend on the Centre’s charity and emphasised its commitment to the Constitution.

 

"We know how to carry on a function. Enough is enough. We don't need the Union's charity. Our sense of constitutional morality requires us to respect and regard the principle of separation of powers and therefore, we will not issue directions to the Union government...." Justice Nambiar said, as quoted by Bar and Bench.

 

The court then directed banks to immediately stop recovery action for those affected by the Wayanad disaster. "Those banks, we will make parties here, we will implead those banks. Give the names of the banks and their addresses we will issue notice to them and implead them. Till such time as they respond, we'll direct stay of all the recovery action," the court said.

 

The case will be heard again after two weeks.