By The Hindu Bureau
Copyright thehindu
Terming as unfortunate the Union government’s reluctance to waive loans taken by people affected by the 2024 landslides in Wayanad, the Kerala High Court on Wednesday orally observed that the Centre has failed the people of the State.
A Division Bench of Justice A.K. Jayasankaran Nambiar and Justice Jobin Sebastian said that it has become quite apparent to the court that the Centre does not intend to exercise its discretion to direct the banks concerned to waive the repayment of the loan amounts.
By refusing to exercise a power that it has, the Centre has virtually failed the landslide victims of Wayanad, the court said and added that it cannot remain mute spectators to the ‘Shylockian methods’ resorted to by the banks concerned to recover the loans.
Referring to an affidavit filed by the Union government on the loan waiver, the court said that it cannot accept the Centre’s stand that it is powerless to act in a situation such as this. Article 73 of the Constitution makes it clear that the executive power of the Union shall extend to matters with respect to which Parliament has the power to make laws. As the repository of such vast powers, the Centre could have considered itself constitutionally obliged to act in a responsible manner to protect the fundamental ‘Right to Life’ of the victims of a natural disaster that they itself had categorised as “severe” under the Disaster Management Act, 2005.
Aid to other States
This is more so when found that the Union government has approved ₹707 crore in aid, by way of additional Central assistance, to Assam and Gujarat which were affected by flood and landslides in 2024, the court observed.
The monetary relief sought in Wayanad through a loan waiver is merely a fraction of this amount. This demonstrates an unwillingness on the Centre’s part to come to the aid of the victims of the Wayanad tragedy. The federal principle envisaged under the Constitution does not allow for a differential treatment being meted out by the Centre to citizens of any particular State. Party politics cannot negate the constitutional guarantee of protection of the fundamental rights of the people in a democratic republic, the court said.
It then issued various directions to the banks that had extended loans to the victims, including keeping in abeyance any recovery action, if any initiated by the additional respondent banks, against the landslide victims, pending final disposal of the writ petition.
The Centre had in its affidavit submitted that although the Reserve Bank of India directives on relief measures by banks in areas affected by natural calamities provide effective ways to redress grievances and to grant relief to the affected people, there is no provision for loan waiver.
It further submitted that the decision to grant loan waiver is beyond the administrative powers of the Department of Financial Services, Ministry of Finance.