Kerala Govt to settle ₹18.75 cr loans of Wayanad landslide survivors

Thiruvananthapuram: In a major relief to people displaced by the multiple landslides in Wayanad, the Kerala government has decided to pay off the debts of those who had borrowed money from various banks. Addressing the media here on Wednesday, Revenue Minister K Rajan said the government would clear loans amounting to ₹18,75,69,037.90 taken by 555 people.

He said funds for settling 1,620 loans of landslide survivors would be sanctioned from the Chief Minister’s Distress Relief Fund (CMDRF). The decision was taken at a Cabinet meeting held on Wednesday, the minister added.

“After visiting the landslide-hit areas, the Chief Minister directed the district administration to prepare a detailed report on the loans taken by the affected people. The state government had requested the Centre to write off these debts under the provisions of the Disaster Management Act. The Kerala High Court had also registered a suo motu case related to the issue and sought the Centre’s response. However, the Solicitor General of India informed the court that the Centre had repealed this provision from the Act. The court termed the move inhuman,” the minister said.

He added that although the state had expected a positive response from the Centre, Kerala’s request had not been considered so far.

“Now, the Kerala government has decided to completely assume the liability of the debts amounting to ₹18,75,69,037.90. The district collector has provided the data, and the government will settle the entire debt of the 555 borrowers identified. The funds will be drawn from the Chief Minister’s Distress Relief Fund,” Rajan said.

He further explained that loans above and below ₹10 lakh would be settled through the district collector, and the government would hold discussions with the State Level Bankers’ Committee (SLBC) regarding the settlement process.

“Though a moratorium has been in force since July 30, 2024, some banks may have charged interest. In such cases, the government will ask the SLBC to write off those amounts. Action will also be taken to settle any pending arrears,” he said.

The minister added that a high-level committee chaired by the Chief Secretary has been constituted to address complaints related to the list of beneficiaries identified under the loan settlement scheme.

Who will benefit from the loan settlement?

• 466 families listed under the rehabilitation project (Phases 1, 2A, and 2B)
• Families who lost their houses and land completely or partially
• 12 families of landslide victims not included in other beneficiary lists
• 36 small-scale vendors and shopkeepers
• 61 people who lost their livelihoods due to the landslides