Wayanad landslide: Centre should use its powers to waive loans, High Court issues warning

KOCHI: The Kerala High Court harshly criticised the Central Government's stance that it cannot waive the loans of those affected by the Wayanad landslide disaster. A special bench comprising Justice A.K. Jayasankaran Nambiar and Justice P.M. Manoj stated that the Centre cannot evade responsibility and directed it to submit a clear position within three weeks. The court clarified that, under Article 73 of the Constitution, the Central Government has executive powers to issue directions to banks regarding loan waivers.

On April 10, the High Court had directed the Central Government to provide an explanation regarding the loan waiver issue. However, it was the National Disaster Management Authority (NDMA) that responded. In an affidavit submitted by Under Secretary Chandan Singh, it was stated that there is no current provision for loan waivers. Previously, such waivers were allowed under Section 13 of the Disaster Management Act, but this provision was removed in the 2025 amendment. The affidavit also mentioned that the Ministry of Home Affairs had been informed that loan waivers are no longer possible.

The Centre argued that banks cannot be forced to write off loans for every disaster, but the court reminded the government that a law exists in the country, and if they are unable to act, they should clearly admit their inability. The court also criticised the submission, saying the explanation of an Under Secretary in Delhi was not sufficient.

Assistant Solicitor General A.R.L. Sundaresan stated that a court directive is needed to exercise special powers and requested more time to submit a comprehensive affidavit on behalf of the Centre. The case was postponed for further consideration to July 4.

Disaster management plan needed for national highways
The High Court also emphasised the need for a disaster management plan specifically for national highways, noting that many roads are being washed away or damaged, especially during the monsoon season in Kerala.

The court noted that no such plan currently exists for national highways and highlighted that 36% of roads in the state are at high risk of accidents, as per a NATPAC report presented by the amicus curiae.

The court directed the Central Government to submit an affidavit within three weeks outlining the steps being taken to prepare a disaster management plan for national highways.