The Centre, on Thursday, informed the Kerala High Court that it wouldn't be able to waive the loans of Wayanad landslide victims as the legal provisions that extended such relief have been deleted under the amended Disaster Management Act.
The Centre's affidavit comes after the High Court repeatedly directed the Centre and National Disaster Management Authority to deliberate on waiving off loans of the victims, who lost all their earnings and lifelong assets in the tragic landslide in Wayanad. Centre filed the affidavit in the suo-motu case initiated by the High Court after the Wayanad landslides.
The High Court, on April 10, issued orders to the Centre, directing it to consider waiving loans of the victims. In its order, the bench directed authorities to deliberate whether the situation in Wayanad calls for invocation of loan waiver under Section 13 of the Disaster Management Act, Live Law reported.
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As per earlier Act, Section 13 enabled NDMA to recommend relief in repayment of loans or grant of fresh loans on such concessional terms to victims of disasters of severe magnitude. However, the provision has been removed from the amended act.
During an earlier instance, the High Court bench expressed dissatisfaction after the Centre informed the court that it wouldn't be able to waive off the loans, but could extend a moratorium for one year. The High Court earlier observed the Kerala Bank has waived off loans to the tune of Rs 5 crore of disaster-affected people and banks with lesser exposure can definitely initiate similar steps.
