KOCHI: The High Court has stated that since the Wayanad landslides have been officially declared a disaster of severe nature, the central government should consider writing off the bank loans of those affected by the disaster.

The central government had reiterated in the High Court that it is not in favour of writing off the loans of the Wayanad disaster victims. It clarified that only a one-year moratorium is under consideration and added that even during the COVID-19 period, loans were not written off. However, the court pointed out that the situation in Wayanad is different from COVID-19, as everything in the region was washed away. This was observed by a special bench consisting of Justice A.K. Jayasankaran Nambiar and Justice S. Easwaran. Subsequently, an interim order was issued. The case was filed in connection with the rehabilitation efforts in Wayanad.

Appearing on behalf of the central government, Additional Solicitor General A.R.L. Sundaresan clarified that RBI guidelines must be followed and that loan restructuring is what is currently being considered. He further stated that banks have discretionary powers and cannot be forced to take specific actions. However, the court inquired whether the National Disaster Management Authority (NDMA) could intervene in such a matter under Section 13 of the Disaster Management Act. The court also pointed out that Kerala Bank had written off a loan of Rs 5 crore.