Only moratorium; loans of those affected by Mundakkai and Chooralmala landslides will not be waived

KOCHI: The Center has abandoned the people of Mundakkai and Chooralmala, who lost everything in the landslide. Their bank loans will not be waived. Instead, a one-year moratorium will be given. The principal and interest will be rescheduled. The Center has expressed its position in the High Court. The court, which asked what those who have lost their land and savings will do, expressed its deep dissatisfaction with the Center's stance. The court pointed out that there is a practice of waiving loans.

Additional Solicitor General AR. L. Sundaresan informed on behalf of the Centre that the recommendation of the State-level Bankers' Committee is as such. The moratorium is as per the Reserve Bank norms. The remaining amount and interest on the loan will be considered as a new loan.

A division bench comprising Justice A.K. Jayasankaran Nambiar and Justice S. Easwaran said that this stance of the banks is completely inappropriate. The petition considered was related to the rehabilitation of the victims of the Chooralmala and Mundakai disasters. A detailed affidavit should be submitted by April 7th, clarifying the steps being taken for debt relief. The matter will be considered again on April 9th.

Chief Minister also attended the Bankers' meeting

Centre: Bankers' committee says that the nature of each loan needs to be examined separately

Court: Isn't that the recommendation of the loan collectors? Interest will be charged even during the moratorium period. Shouldn't this be understood

Centre: The Chief Minister also attended the Bankers' meeting that took the decision

Court: Shouldn't the central government take an independent decision

Centre: Banks have not written off loans even during the Covid period

Court: There is a history of loans being written off in 2008-09 as per the central decision

Utilization of Rs 529 crore: Clarification

The central government has clarified the time limit for the utilization of the interest-free loan of Rs 529.50 crore granted for the rehabilitation of Wayanad. The central government informed the High Court that December 31 this year is the deadline for transferring the amount to various implementing agencies, and not the date for completion of construction works. Approval will be given if the state provides the utility certificate after transferring the funds to various departments.