EMI deducted from relief fund in Wayanad landslide survivors' accounts, Govt declares moratorium

The State Government has declared moratorium for the entire revenue recovery proceedings in the landslide affected Vythiri taluk of Wayanad. A gazette notification has been issued by the Department of Revenue. The moratorium shall be in force for a period of one year with effect from the date of notification unless otherwise notified by the Government. The notification was issued on October 7. 

While the Government has initiated a comprehensive rehabilitation package for uplifting the victms of Wayanad landslide, it has come to the notice of the government that certain banks have recovered their dues from the amount deposited to the bank accounts of landslide survivors from the Distress Relief Fund, according to the explanatory note in the gazette notification.

The notification says that as per section 83B of the Kerala Revenue Recovery Act, 1968 the Government has the power to issue moratorium for the entire revenue recovery proceedings subject to the conditions and guidelines, as may be notified by the Government from time to time. A massive landslide occurred in Wayanad District in July 2024 in which hundreds of people lost their lives and properties. 

The moratorium was declared after the Government took note of the fact that some banks deducted monthly instalments of loans from the accounts of homeless landslide survivors after they received financial aid from the Relief Fund Government in their bank accounts. This goes against the recommendation to banks not to insist on loan repayment by landslide survivors, the Government noted in the notification.

It has become necessary to protect the people in the landslide hit Vythiri Taluk in Wayanad District from the unfair recovery of loans from their bank accounts and consequential revenue recovery proceedings initiated by banks. It has been decided to stop all revenue recovery proceedings regarding all loans and arrears of the people in the landslide-affected Vythiri Taluk in Wayanad District until further orders. The Government of Kerala hereby issue a moratorium for the entire revenue recovery proceedings in respect of all loans availed and arrears of the people in the Vythiri Taluk of Wayanad Districregardingevenue recovery act, according to the notification.