Kerala Court Challenges Federal Stance on Wayanad Loan Waivers
The Kerala High Court criticized the Union government for failing to waive loans for the 2024 Wayanad landslide victims. The court argues that federal powers should have been used to protect victims' fundamental rights. Recovery by banks is paused pending further legal proceedings.
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In a scathing critique, the Kerala High Court has called out the Union government's failure to waive the loans of 2024 Wayanad landslide victims as a dereliction of its duties. Justices A.K. Jayasankaran Nambiar and Jobin Sebastian criticized the central government's unwillingness to exercise its constitutional powers.
The court has ordered banks to halt any loan recovery actions pending the resolution of a public interest litigation. It emphasized that the Union government should have protected the rights of those affected by the disaster, especially since it categorized the landslides as 'severe' and provided aid to other states.
Major banks have been ordered to explain their stance on waiving loans, as the court grapples with what it calls 'Shylockian methods' of loan recovery by banks. Further hearings are set for October 29 to address the plight of those who lost property and lives in the landslide.
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