A Division Bench of Justice AK Jayasankaran Nambiar and Justice Jobin Sebastian indicated that it would issue an interim order halting loan recovery proceedings against the families affected by the Wayanad landslides.
Published Oct 08, 2025 | 5:07 PM ⚊ Updated Oct 08, 2025 | 5:07 PM
The Union government informed that it cannot waive of loans availed by Wayanad landslide victims. The High Court (inset) slammed the Centre for failing the people.
Synopsis: The high court’s scathing remark came after the Centre informed that it cannot waive the loans of the Chooralmala and Mundakkai landslide victims, stating that such action was beyond its jurisdiction and not feasible.
The Union government has failed the people, the High Court of Kerala observed on Wednesday, 8 October, in response to the Centre’s submission that loans availed by Wayanad landslide victims could not be waived.
While making the scathing remark, a Division Bench of Justice AK Jayasankaran Nambiar and Justice Jobin Sebastian indicated that it would issue an interim order halting recovery proceedings against the affected families.
The court was hearing a suo motu case initiated in the wake of the devastating landslides that struck Wayanad on 30 July 2024, which killed 298 people, according to official estimates.
The court has been monitoring both state and central relief measures since the tragedy.
During the hearing, the bench expressed sharp displeasure after the Union government reiterated its inability to waive the loans.
Earlier, the Additional Solicitor General of India had informed the court that there was “ambiguity” over which ministry should take a call on the matter.
The 2024 Wayanad landslides were one of the deadliest disasters in Kerala’s history. (X)
On Wednesday, the Advocate General submitted that the Ministry of Home Affairs had filed an affidavit maintaining its stand that it could not grant a waiver, citing limitations.
Responding, the Bench made scathing oral remarks, questioning the Centre’s unwillingness to act. “The Union says it has limitations because of an RBI circular? This is not about powerlessness; it is about unwillingness. Don’t hide behind excuses. In moments like this, the Union government has failed the people. Enough is enough. We don’t need the Union’s charity,” the court observed.
The judges also directed the Centre to submit a list of all banks under its control so they could be made parties to the case.
The Bench noted that state-controlled banks had already waived the loans, in contrast to the Centre’s inaction.
Signalling its intention to protect the victims from further financial distress, the court orally stated that it would stay loan recovery proceedings for the time being.
“If this is going to be the stance of the Union government, it is going to be a rough ride. This step-motherly attitude will not run. Please let your government also know,” the Bench cautioned.
Earlier, the Centre informed the high court that it cannot waive the loans of the Chooralmala and Mundakkai landslide victims, stating that such action was beyond its jurisdiction and not feasible.
In an affidavit, it noted that the Disaster Management Act has no provision for loan write-offs.
Around ₹35.3 crore in loans were taken by the victims from 12 nationalised banks.
