Kochi/ Wayanad: The Kerala High Court on Wednesday expressed dissatisfaction over the Union government's decision not to waive loans taken by the victims of the Wayanad landslide.

The Union government told the court that it has agreed to a one-year moratorium on the loans taken by the affected persons. The court was told that interest would accrue on these loans during the moratorium.

The division bench comprising Justices AK Jayasankaran Nambiar and Justice Easwaran S orally observed that the Centre has, on many occasions, waived loans, and it cannot claim to be powerless regarding the people of Wayanad. "You have waived the agricultural loans during 2008-09. So, therefore, it is not as though you are powerless on waiver," the bench observed.

The court was hearing cases related to the rehabilitation of landslide victims. It had previously asked the State Level Banking Committee (SLBC) not to take any coercive steps against any victim who has defaulted on bank loans until the Union government decides on loan waiver. (SLBC is an inter-institutional forum that ensures co-ordination between the state government and banks operating in the state on matters pertaining to banking)

Additional Solicitor General ARL Sundaresan informed the court that the Centre has approved the SLBC's recommendation on a moratorium. He told the court the decision was unanimous in the meeting, which was also attended by Kerala Chief Minister Pinarayi Vijayan.

The court then asked the Centre to file an affidavit delineating SLBC's proposal, the proposals accepted by the Central Government, and the Central Government's decision regarding loan waiver.
The case will now be heard on April 9.
(With LiveLaw input)