Centre tells Kerala High Court it can’t waive loans as Section 13 of Disaster Management Act has been removed. Only a one-year moratorium offered.
Kochi: Today, on June 12, in a recent development, the Central Government has told the Kerala High Court that it cannot waive the loans of people affected by the Wayanad landslide.
This is because the provision in the Disaster Management Act that allowed such waivers has been removed after the law was amended.
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This statement was made by the Centre through an affidavit in response to a suo motu case taken up by the Kerala High Court.
The case was started after the tragic landslide in Wayanad, where many people lost their homes, earnings, and lifelong savings.
The High Court had earlier asked the Centre and the National Disaster Management Authority (NDMA) to look into the matter and consider waiving the loans of the affected people.
The High Court had passed an order on April 10, telling the Centre to examine the situation and see if a loan waiver could be allowed under Section 13 of the Disaster Management Act.
As reported by Live Law, the Court had specifically said that the authorities must
“deliberate whether the situation in Wayanad calls for invocation of loan waiver under Section 13 of the Disaster Management Act.”
Earlier, the law under Section 13 of the Disaster Management Act allowed the NDMA to
“recommend relief in repayment of loans or grant of fresh loans on such concessional terms to victims of disasters of severe magnitude.”
However, this important provision has now been deleted from the amended version of the Act.
During a previous hearing, the High Court had also expressed its displeasure when the Centre informed the court that it could not waive off the loans.
Instead, the Centre said it could only offer a one-year moratorium. The High Court was not satisfied with this response and noted that more could be done to help the victims.
Also Read: [Wayanad Landslide] Kerala High Court Sought Weekly Report on Rehabilitation Progress
The Court pointed out that Kerala Bank had already
“waived off loans to the tune of Rs 5 crore of disaster-affected people,” and added that “banks with lesser exposure can definitely initiate similar steps.”
CASE TITLE:
In Re: Prevention And Management Of Natural Disasters In Kerala vs State Of Kerala WP(C) 28509/ 2024 & Connected Cases
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