Cannot waive loans of Chooralmala, Mundakkai landslide victims; Centre clears its stand

NEW DELHI: The central government has informed the Kerala High Court that it cannot waive the loans of the Chooralmala, Mundakkai landslide victims. It said that writing off loans is not practical.

In an affidavit submitted before the court, the Centre said that loan waivers do not fall within its jurisdiction and, therefore, it is unable to take any action in the matter. Reports indicate that the High Court strongly criticised the Centre’s stance.

The suggestion to write off the loans of disaster-affected families was initially made by the High Court. However, the Centre had earlier clarified that there is no provision for such a measure under the Disaster Management Act. The court had also asked whether the government could exercise special powers to provide relief, but the Centre repeatedly sought extensions to file its response.

According to reports, families affected by the Chooralmala and Mundakkai landslides had taken loans amounting to Rs 35.30 crore from 12 nationalised banks.