Ernakulam: The Kerala High Court on Monday ordered the State to direct the State Level Bankers' Committee (SLBC) not to take any coercive steps against any Wayanad landslide victim who has defaulted on bank loans till the matter of loan waiver is decided by the Central Government.

“We deem it appropriate to direct that till such time as the decision of the Central Government on the aspect of loan waiver is communicated to this Court, the State Government shall ensure that no coercive steps are taken for recovery of loan amounts from those affected by the landslides,” the court said.

The Division Bench of the Court, comprising Justice A K Jayasankaran Nambiar and Justice Easwaran S, was hearing the suo motu case initiated by the High Court in the aftermath of large-scale landslides that hit Wayanad on July 30, 2024. The court has been actively monitoring the rehabilitation activities undertaken by the State and the support offered by the Centre since then.

Advocate ARL Sundaresan (ASG), who appeared on behalf of the Centre, informed the court that as per his information, the Chief Minister has held a meeting with the State Level Association of Banks. The meeting has identified areas where loans can be waived. This report will be forwarded to the National Level Committee. He informed the court that the Centre will take a decision on this after considering the opinion of the National Level Committee. He submitted that this will be done in a period of 3 weeks.

The court has also sought clarification on the deadline fixed by the Centre on the completion of rehabilitation projects. The Centre had sanctioned a long-term interest-free loan of Rs 529.50 crore to implement certain rehabilitation-related projects but has directed that the money should be utilised before 31 March.

The court observed that completion of project within the time limit is an impossibility and enquired whether 31 March was fixed as it is the closing date of financial year. The court asked the ASG to get a clarification as to whether the Centre just requires the funds to be transferred to the project implementing agency before the said date.
(With LiveLaw inputs)