**Centre has failed Kerala people: Kerala High Court on Wayanad loan relief**
*By Snehil Singh | Oct 08, 2025, 04:44 pm*
The Kerala High Court has strongly criticized the central government for its refusal to waive loans of those affected by the devastating Wayanad landslides. The court declared that the Union government had “failed the people of Kerala” and emphasized that the state “does not need the Centre’s charity.”
### Court Criticizes Centre’s Stance
A Division Bench comprising Justice AK Jayasankaran Nambiar and Justice Jobin Sebastian expressed sharp disapproval of the Centre’s affidavit, which argued there was no legal provision to waive loans for disaster-hit individuals. The judges dismissed this position as “bureaucratic babble,” stating, “Please tell the Union Government it has failed the people of Kerala.”
The bench clarified that the issue was not about the Union government’s power to act but rather its willingness to do so.
### Disparity in Disaster Relief Funding
The court also highlighted a disparity in disaster relief funding. It pointed out that the Centre had sanctioned funds for flood-affected regions in Assam and Gujarat, even though those floods were not classified as severe. While respecting the Constitution and the separation of powers, the judges made it clear they would no longer issue directions to the Union government.
Justice Nambiar firmly stated, “We don’t need the Union’s charity,” and ordered banks to immediately stop all loan recovery actions against those affected by the Wayanad landslides.
### Banks to Be Impleaded in Proceedings
The bench decided that banks would be impleaded in the ongoing case and directed them to clarify whether they planned to waive loans either fully or partially. The court requested a list of these banks and said it would issue notices and include them in the case.
Until the banks respond, the High Court has ordered a stay on all loan recovery actions related to the affected individuals. The case will be heard again in two weeks.
### Background
This suo motu case was initiated by the Kerala High Court following the massive landslides that struck Wayanad on July 30, 2024, resulting in dozens of deaths and displacing hundreds of people.
The court’s firm stance underscores the urgent need for more compassionate and proactive disaster relief measures from the central government to support those suffering in Kerala.
https://www.newsbytesapp.com/news/india/we-don-t-need-your-charity-kerala-hc-to-centre/story
