**‘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 over its refusal to waive loans for those affected by the devastating landslides in Wayanad. The court expressed its disappointment, stating that the Union government had “failed the people of Kerala” and emphasized that the state “does not need the Centre’s charity.”
### Court’s Firm Stance on Centre’s Response
A Division Bench comprising Justice AK Jayasankaran Nambiar and Justice Jobin Sebastian voiced sharp criticism against the Centre’s affidavit, which argued there was no legal provision to waive loans for disaster victims. The judges dismissed this reasoning as mere “bureaucratic babble” and told government counsel, “Please tell the Union Government it has failed the people of Kerala.”
They further remarked, “It is not about whether the Union can act, but whether they are willing to act,” highlighting the government’s unwillingness rather than incapacity to provide relief.
### Disparity in Disaster Relief Funding
The court also drew attention to a perceived funding disparity, noting that the Centre had approved funds for Assam and Gujarat following floods, despite those disasters not being classified as severely as the Wayanad landslides. While upholding respect for the Constitution and the separation of powers, the judges made it clear they would refrain from issuing further directions to the Union government.
Justice Nambiar emphasized this point, stating, “We don’t need the Union’s charity,” and ordered banks to immediately halt loan recovery efforts against those affected by the Wayanad disaster.
### Legal Proceedings and Next Steps
The bench has decided to involve banks directly in the case. Banks are to be impleaded and required to clarify their stance regarding the possibility of full or partial loan waivers. “Give the names of the banks. We will issue notice to them and implead them. Till such time as they respond, we’ll direct stay of recovery action,” the court declared.
The matter is scheduled for a follow-up hearing in two weeks.
### Background
This suo motu case was initiated by the Kerala High Court following the catastrophic landslides that struck Wayanad on July 30, 2024. The disaster claimed dozens of lives and displaced hundreds, leaving many vulnerable and financially burdened. The court’s intervention seeks to provide relief to the affected population amidst delays and rejection from the central authorities.
—
*Stay tuned for further updates on this developing story.*
https://www.newsbytesapp.com/news/india/we-don-t-need-your-charity-kerala-hc-to-centre/story
