High Court to Union govt: 'Just say you cannot help Wayanad landslide victims'

Kochi: The Union government faced sharp criticism from the High Court on Wednesday over its refusal to waive bank loans for victims of the Mundakkai–Chooralmala disaster. The court described the Centre’s stance as “very disturbing,” noting that the government should at least have the courage to admit it lacks the will to provide relief, rather than claiming it is unwilling. Observers noted a perceived “stepmotherly” approach to Kerala, contrasting it with the swift aid provided by the Centre to states like Haryana, Gujarat, and Assam.

In its affidavit, the Centre argued that, under existing banking rules and disaster relief laws, loan waivers are not permissible. The court reacted sharply, remarking “fantastic” at the argument and questioning the government’s claim that it cannot interfere with banks. “Are you trying to say the Union government has no authority over the Reserve Bank? If there were no Union government, would the Reserve Bank even exist?” the bench asked. “If you cannot do it, just say so directly. Why file an affidavit like this?”

The court has also asked the Centre to provide a list of banks under central government control. Notices will be sent to these banks directly, and if any refuse to waive loans, the court has directed that all recovery actions on the affected loans be immediately stayed until further orders.

The affidavit reiterated that the Disaster Management Act had been amended in March 2025, effectively removing the government’s power under Section 13 to waive loans. The Centre maintained that the decision now rests entirely with the banks. The High Court, however, has previously urged the government to exercise discretion and consider the human dimension when granting relief, advice the government has ignored.