Today(on 23rd August),The Kerala High Court condemned the Kerala Gramin Bank for deducting loan EMIs from the compensation accounts of Wayanad landslide survivors. This issue emerged during a Suo motu case overseeing relief efforts for the devastating landslides that affected over 200 lives.
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Thiruvananthapuram: Today(on 23rd August), the Kerala High Court expressed strong disapproval of reports indicating that the Kerala Gramin Bank, a regional rural bank, had deducted loan EMIs from the compensation accounts of survivors of the devastating Wayanad landslides that occurred last month. This issue came to light during the hearing of a Suo motu case initiated to oversee relief efforts following the catastrophic landslides that claimed over 200 lives and left many others injured or missing.
The Bench, comprising Justices AK Jayasankaran Nambiar and Syam Kumar VM, directed the State’s counsel to investigate the allegations and determine whether such practices were being adopted by other banks across the state.
The Court emphasized-
“While banks have the right to recover loans, when funds are provided for a specific purpose, the bank must hold them in trust for the beneficiaries and cannot use them for other purposes.”
The Court further underscored the ethical duty of banks, stating-
“Secondly, the bank has a basic duty to show compassion in such situations. It is an essential responsibility. Mr. Unnikrishnan, please investigate whether this has occurred elsewhere in the state. If it has, we will take action.”
The Bench lamented that such actions demonstrate a loss of empathy among institutions, highlighting the disconnect between initial outpourings of sympathy and subsequent insensitivity.
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The Court remarked-
“In the end, we are losing sight of the humanitarian aspect of the situation! In the first week, everyone expresses sympathy, but by the next week, actions like these occur.”
Further emphasizing the need for empathy and humanitarian concern, the Court instructed the State to ensure that compensation awarded to landslide survivors actually reaches the intended beneficiaries. The Court stated-
“Please ensure that the full amount provided as compensation or relief is actually received by the beneficiaries. It is unreasonable to expect them to come to court.”
The High Court’s intervention comes as part of a broader inquiry into the adequacy of relief measures and the potential for future natural disaster prevention. The Court outlined a three-phase approach to address the larger issue of natural disaster management.
In the first phase, the Court intends to gather scientific input on measures to prevent natural disasters and will monitor ongoing rescue operations in landslide-affected areas on a weekly basis. The focus will be on identifying and implementing scientifically-backed strategies to mitigate the risk of future disasters.
The second phase will involve an examination of the effectiveness of disaster management authorities at various levels—national, state, and district. The Court will scrutinize whether these bodies are staffed with qualified experts and whether they have made any recommendations that could be presented to the State government for necessary legal amendments.
The third phase will focus on the implementation of these disaster prevention measures, with a special emphasis on ensuring public consultation before any decisions are made that could impact the environment.
The Court made it clear that local communities must be involved in the decision-making process, noting-
“We plan to gather data from individuals in areas prone to natural disasters. Those directly affected by environmental issues are the first to experience their impacts. Policymakers must consider their perspectives, and public consultations at the ground level are essential.”
The Court also turned its attention to Kozhikode, another district severely affected by incessant rains last month, but which has not received the same level of attention as Wayanad. The Bench remarked that this district appeared to have escaped the notice of the “do-gooders,” stressing that relief efforts should not be limited to Wayanad alone but should also extend to Kozhikode.
Representing the Central government in today’s proceedings was Panel Counsel TC Krishna, while Government Pleader Unnikrishnan represented the Kerala government. Senior Advocate Ranjith Thampan appeared as amicus curiae.
