Haunted by debt: Mundakkai-Chooralmala landslide survivors receive bank notices despite government waiver

KALPETTA: Survivors of the Mundakkai-Chooralmala landslide are facing renewed distress as financial institutions have begun issuing notices for overdue loan repayments, barely two weeks before the two-year mark of the tragedy.

Residents have accused the district administration of inaction, pointing out that government-sanctioned measures to waive these liabilities have stalled. With the recovery process delayed, survivors report that the interest on these outstanding loans has effectively doubled, increasing their financial burden.

The catastrophic landslide, which occurred on July 30, 2024, prompted state intervention. On January 28, the Cabinet resolved to assume the liabilities for 555 beneficiaries, covering 1,620 individual loans. The relief package was intended to cover debt for families of the deceased, displaced residents, and business owners who lost their livelihoods.

An official order for the waiver was issued on January 29, covering all dues accumulated up to August 30, 2024. The state government allocated 18.75 crore from the Chief Minister’s Distress Relief Fund for this purpose, and the funds have been successfully transferred to the District Collector’s account. However, survivors claim the administration has failed to execute the disbursement, leaving them vulnerable to bank recovery proceedings.

Attempts to resolve the impasse, including an adalat held in Kalpetta between June 9 and 11, have yielded no tangible results, according to the affected residents. Furthermore, compensation for the loss of commercial shop units remains pending, despite a Cabinet decision on February 20 to address the issue.