Kochi: A division bench of the Kerala High Court on Thursday strongly criticised the Union government and the National Disaster Management Authority for failing to follow the example set by Kerala Bank, which waived loans amounting to ₹5 crore for victims of the Wayanad landslide.
The court was hearing a suo motto public interest litigation (PIL) initiated in response to the landslides, aimed at enhancing disaster prevention and management strategies in Kerala.
These stern observations were made while reviewing the affidavit submitted by the Centre, which cited the Reserve Bank of India's Master Directions on Natural Calamities. According to the affidavit, the loans of Wayanad landslide victims could only be restructured or rescheduled, not written off.
The bench of Justices A.K. Jayasankaran Nambiar and S. Easwaran observed that while the Reserve Bank of India lacks the authority to mandate banks to waive loans for disaster-affected individuals, the National Disaster Management Authority (NDMA) is empowered to do so under the Disaster Management Act. The judges emphasised that the Wayanad landslide had been categorised as a 'severe' natural disaster by the Union government itself, yet the NDMA had failed to even consider using its statutory powers to direct banks to waive or write off loans. They described this as a clear abdication of responsibility by both the Union government and the NDMA.
The Court also highlighted that a total of 12 banks held 3,220 accounts in the disaster-affected region, with their collective exposure amounting to ₹35.30 crore.
"Considering the nature of the disaster and its categorisation by the Union government as a 'severe disaster', one would expect the banks concerned to emulate the example of the Kerala Bank and write off the loans availed by the people of the affected area.
"In fact, one would expect the banks to further take care of the survivors of the landslide by providing them with appropriate support to build back their lives by sanctioning fresh loans as per the requirement of the borrowers without charging any penal interest for default," said the Court.
The bench further criticised the Centre, urging it to uphold its role as the chief executive in a welfare state by extending support to citizens who have lost their livelihoods. It remarked on the "Shylockian" approach of most banks towards borrowers in the disaster-affected areas.
The tragedy of July 30 last year resulted in the decimation of four villages, leaving hundreds injured, claiming over 200 lives, and with 32 individuals still reported missing.
The Court also directed national and state agencies to ensure the timely removal of debris and address related issues before the monsoon season, emphasising the need to prevent a recurrence of such a catastrophe.
(inputs from IANS)