Kalpetta: Dealing a big blow to victims of the Wayanad Mundakai-Chooralmala landslide, the Central Government is yet to write off the loans issued to them by public sector banks.

Incidentally, the Kerala Bank had decided to write off its loans to the landslide-affected people following the state government's intervention. The State Revenue Department also conducted a camp to reschedule eligible loans.

Even though the Kerala State Disaster Management Authority had urged the National Disaster Management Authority to consider waiving public sector bank loans under Section 13 of the Disaster Management Act, there has been no favourable response. According to data, 12 public sector banks have sanctioned 3,220 loans amounting to Rs 35.32 crore to residents of the landslide-affected areas.

Soon after the disaster, a meeting of the State-Level Bankers' Committee was convened by the Chief Minister and public sector banks were urged to write off their loans to the victims. The decision in this regard had to be taken by the Centre as the Bankers' Committee lacked the necessary powers.

Still, the victims received some relief after the meeting as banks allowed a grace period of five years to repay agricultural loans and announced a moratorium during the first year.

Meanwhile, in September, the Centre informed the Kerala High Court that it would take a decision on loan waiver within six weeks. According to the Centre, a high-level committee with officials from three ministries was examining Kerala’s demands, including loan-waiver.

While it is yet to decide on writing off the loans, the Centre has also not announced any special aid package for the victims. At the same time, Chief Minister Pinarayi Vijayan said that rehabilitation would take place for the people affected by the disaster despite the lack of support from the Centre. "No aid has been announced by the Centre even after the visit of the Prime Minister and other top dignitaries to the affected area," said the Chief Minister.

Kerala’s Finance Minister K N Balagopal said that the Centre was discriminatory towards the state by not announcing a package for Wayanad. "Big amounts were granted even to states where small disasters had occurred," he said.

Opposition Leader in Kerala VD Satheesan said that the UDF MPs would stage a protest in Parliament against the denial of a package to rehabilitate people affected by the landslides in Wayanad.

On the other hand, BJP’s state president, K Surendran, alleged that the state government had sabotaged the Wayanad rehabilitation project with the silent support of the opposition UDF. The Chief Minister has not convened an all-party meeting even four months after the disaster, he said.