Kochi : The Central government on Wednesday asked the Kerala High Court for more time to decide on waiving bank loans taken by victims of the Mundakkai-Chooralmala landslide in Wayanad.
During the hearing, the Union government sought three additional weeks to file its response, explaining that confusion over which ministry held authority to take the final decision had delayed progress.
The High Court reminded the Centre that Kerala Bank had already written off loans of families affected by the tragedy, setting an example that other banks could follow. The bench stressed that the matter could not drag on indefinitely and scheduled the next hearing after three weeks.
Survivors and families of victims have repeatedly demanded a waiver, pressing both the state and Central governments for urgent relief. In April, the High Court criticised the Union government and the National Disaster Management Authority (NDMA) for inaction, urging them to emulate Kerala Bank, which forgave ₹5 crore worth of loans for affected residents.
Court records show that 12 banks collectively manage 3,220 accounts in the landslide-hit region, with total exposure of ₹35.30 crore. The bench reminded the Centre of its welfare responsibilities, cautioning against a “Shylockian” approach by banks towards borrowers.
The July 30, 2024 landslide destroyed four villages, injured hundreds, claimed more than 200 lives, and left 32 people still missing.
As part of the rehabilitation programme, Chief Minister Pinarayi Vijayan laid the foundation stone in March for houses to be built for affected families. The project aims to provide 1,000 sq-ft houses on seven cents of land each to 402 beneficiaries.
During his speech, CM Vijayan accused the Union government of failing to provide disaster relief, pointing out that Kerala received no Central aid and had to depend on loans that the state must repay.
