Victims of Wayanad landslide denied loan waiver by Union government

Kochi: The Union government has made it clear to the High Court that it will not be waiving loans for victims of one of the deadliest landslides in Kerala. In an affidavit submitted to the court, the Centre stated that under current rules, there is no provision to grant such relief.

The High Court had repeatedly sought clarity from the government on the issue, highlighting the scale of the tragedy. Yet, the latest submission leaves little hope for survivors still struggling to rebuild their lives.

The Union government claimed in its affidavit that the Disaster Management Act was amended in March 2025 (Provision 13) to deal with loan waivers. But they argued that even with this amendment, it is entirely up to individual banks to decide whether to extend relief. The government added that it cannot intervene in the internal workings of the banks. Essentially, the discretionary power to waive loans for natural disaster victims has been removed, leaving survivors with no direct recourse from the Centre.

The court pressed the government, asking why affected people cannot be helped and why the exercise of discretion cannot include some measure of human consideration. The Union government, however, outrightly rejected the request. The bench even cited Kerala Bank’s example, which had waived loans worth 3.85 crore rupees for 207 people, urging other banks to follow suit.

The Wayanad Mundakkai landslide of July 29, 2024, which hit the Mundakkai, Chooralmala, and Punchirimattam areas, covering wards 10, 11, and 12 of Meppadi Panchayath, claimed more than 300 lives. Despite the Kerala government submitting a rehabilitation plan worth 2,162.05 crore rupees, the Centre, under Amit Shah’s leadership, approved only 260.45 crore, and that too after more than a year of persistent delegation and dialogue.

The stark contrast in treatment is evident when compared with Assam, which received 2,160 crore rupees per affected person after being hit by severe floods, a state ruled by the BJP. The Union government’s economic strangulation of Kerala’s disaster victims underscores a deeply partisan approach, leaving those who lost homes, livelihoods, and loved ones to fend for themselves.