Kochi: The Kerala High Court on Wednesday sharply criticized the Union government for refusing to waive loans of those affected by the July 2024 Wayanad landslides, describing the Centre’s stance as “bureaucratic babble” and a failure to support citizens in distress.
The July 30 tragedy wiped out four villages, left over 200 dead, hundreds injured, and 32 people still missing.
A Division Bench, hearing pleas from victims and survivors, questioned the Centre’s argument that no legal provision exists to allow loan waivers in cases of natural disasters. “Please tell the Union Government it has failed the people of Kerala. We had made it very clear that it is not a situation where the Union is powerless to act. By this affidavit, you’ve again shown that you are hiding behind this argument of powerlessness. Why is that being done?” the judges asked.
“This is just bureaucratic babble. It is not about whether the Union can act, but whether they are willing to act. If you are unwilling, have the courage to say it. Who are you trying to fool?” they asked.
The court said the government must be transparent about its position, noting: “Please tell your government that these kinds of tactics are not going to carry the day. If they have the courage, let them say that they are not willing to help. At least the people should know that in moments like these, the Union government has failed them.”
While stressing the principle of separation of powers, the Bench clarified it would not issue binding directions to the Centre, stating that its restraint stemmed from constitutional morality rather than agreement with the government’s stand. "Having said all this, we can't be behaving like them. Our sense of Constitutional morality requires us to respect in regard the principle of separation of powers and therefore, we will not issue directions to the Union government. That is because of our magnanimity and as a body, an integral part of the State, which respects the Constitution. Enough is enough. We don't need the Union's charity, the Bench said."
The court then sought details of banks and financial institutions under Union control, noting that loans from some state government-controlled banks had already been waived. Referring to institutions such as Bank of Baroda and Canara Bank, it said it would implead them in the case, issue notices, and temporarily halt recovery proceedings.
The Bench observed that banks would be given an opportunity to respond through counter-affidavits, either agreeing to waive loans fully or partially, or providing reasons for refusing relief despite the “calamitous situation”. The matter will be heard again in two weeks.