Kerala High Court to stay recovery of loans from victims of Wayanad landslide

The Kerala High Court on Wednesday said that it will stay the recovery of loans from victims of the 2024 landslides in Wayanad [In Re: Prevention and Management of Natural Disasters in Kerala]..A Division Bench of Justice AK Jayasankaran Nambiar and Justice Jobin Sebastian was hearing a suo motu case initiated to address the rehabilitation of Wayanad landslide victims.The Court said that it would pass the interim order staying loan recovery proceedings against such victims, after it impleads the concerned banks to the suo motu case. The Court said it will ask these banks to respond as well. To this end, the Court today sought a list of the names of banks controlled by the Union government. It noted that State-controlled banks have already given loan waivers to the landslide victims. "Till such time as they (banks) respond we'll direct stay of all the recovery action. The recovery action will stay, at least for time being because it can't happen like this," Justice Nambiar said. .The Bench added that the banks may seek a modification of the Court's stay order after they give information on whether they are insisting on the recovery of the loans from landslide victims. If the banks wish to continue with such loan recoveries, they will have to explain why they have insisted on such a course of action despite the calamitous situation faced by the victims of the landslide, the Court said. "We'll give them an opportunity to seek a modification of this interim order, after filing a counter affidavit where they will say whether or not they will waive the loans or not, either partially or entirely. Let them give reasons as to why they're insisting on this despite this calamitous situation. Because they cannot be people who have seen aliens. As part of citizens, you must also understand what is happening in your neighbourhood," Justice Nambiar remarked. .Notably, the Court today also slammed the Central government for its apparent unwillingness to step in and aid in halting loan recovery processes against victims of the Wayanad landslide. In a statement submitted before the Court, the Union government had said that there are sufficient measures envisioned in a 2018 Master Circular issued by the Reserve Bank of India (RBI) to provide necessary relief to those affected by such calamities. Pertinently, it added that there is no legal provision for providing loan waivers in such cases. "It is submitted that the RBI directions on Relief Measures by Banks in Areas Affected by Natural Calamities provides effective ways to redress grievances and to grant relief to the affected people in order to ameliorate the difficulties the borrowers may face due to the calamity, but there is no provision ofloan waiver. However, on any shortcomings being noticed in the implementation of the said guidelines, DFS (Department of Financial Services) may take corrective measures by issuing necessary directions to the Banks," the statement said. .The Court was not impressed by this stance. "This is just bureaucratic babble. It's not about whether the Union can act, but whether they are willing to act. If you are unwilling to act, have the courage to say it. Who are you trying to fool? ... Please tell the Union Government it has failed the people of Kerala ... Please tell your government, that these kind of tactics are not going to carry the day. If they have the courage, let them say that they are not willing to help. But at least the people should know that when it comes to moments like this the union government has failed the people ... Enough is enough. We don't need the Union's charity," Justice Nambiar said, addressing the Central government's counsel. .It's not about whether the Union can act, but whether they are willing to act. If you are unwilling, have the courage to say it. Who are you trying to fool?Kerala High Court to Centre.The matter will be heard next after two weeks. .Advocate General Gopalakrishna Kurup appeared for the State of Kerala..[Read Order].[Read Live Coverage]