Kerala Govt to Take Over Loan Liabilities of Mundakkai-Chooralmala Disaster Victims

Thiruvananthapuram: The state government has decided to take over the entire outstanding loan liabilities of those affected by the Wayanad landslide disaster, following the negative stance of the central government, Revenue Minister K Rajan announced. The government will clear 18.75 crore rupees in loan dues of 555 beneficiaries, including families listed for rehabilitation, traders, and workers, by allocating funds from the Chief Minister’s Disaster Relief Fund.

Despite the Centre itself declaring the disaster a “severe natural disaster,” it has refused to write off the loans, a position strongly criticised by the state government. The state had requested loan waivers under Section 13 of the Disaster Management Act, but the Centre took what the government described as an inhumane step by removing that very provision. Even the High Court’s observation that demanding loan repayment from people who have lost both land and livelihood is unconstitutional was ignored by the Centre. In this situation, the state decided not to wait any longer and instead stepped forward directly to wipe away the tears of the affected people.

Beneficiaries under the scheme:

Families on the rehabilitation list: 446 families who have lost their homes and land fully or partially.

Families of the deceased: 12 families not included in other beneficiary categories.

Traders: 36 people in total, including 20 traders operating from rented buildings, 14 traders from their own buildings, and 2 building owners.

Workers: 61 workers who lost their means of livelihood.

The state government will hold urgent discussions with the State Level Bankers’ Committee regarding the takeover of these loans. Banks will be asked to waive interest from July 30, 2024, and to ensure that the CIBIL scores of disaster victims are not affected.

The minister pointed out that the Centre’s new policy would be detrimental not only to Kerala but to any state in the country facing a disaster. He added that this decision reflects the LDF government’s declared commitment to never abandon the people in times of crisis.