**‘Centre has failed Kerala people’: High Court Criticizes Union Government on Wayanad Loan Relief**
*By Snehil Singh | October 8, 2025, 4:44 PM*
The Kerala High Court has strongly reprimanded the central government for refusing to waive loans of those affected by the devastating Wayanad landslides. In a sharp rebuke, the court stated that the Union government had “failed the people of Kerala” and asserted that the state “does not need the Centre’s charity.”
### Court’s Strong Criticism of Centre’s Stance
The criticism came from a Division Bench comprising Justice A.K. Jayasankaran Nambiar and Justice Jobin Sebastian. The bench dismissed the Centre’s affidavit, which claimed there was no legal provision to waive loans for disaster-hit persons, as “bureaucratic babble.”
Addressing government counsel, the judges said, “Please tell the Union Government it has failed the people of Kerala.” They emphasized that the issue was not whether the Union government had the legal authority to act but whether it was willing to do so.
### Funding Discrepancies Highlighted
The court also highlighted a funding disparity, pointing out that the Centre had sanctioned funds for Assam and Gujarat despite their floods not being classified as severe disasters.
While underlining their respect for the Constitution and the separation of powers, the judges made it clear they would no longer issue directives to the Union government regarding the matter.
Justice Nambiar remarked, “We don’t need the Union’s charity,” and ordered banks to immediately halt loan recovery from those affected by the Wayanad landslides.
### Legal Proceedings and Next Steps
The bench announced that banks would be impleaded in the case and asked them to clarify whether they planned to waive loans either fully or partially. “Give the names of the banks. We will issue notices to them and implead them. Until they respond, we direct a stay on loan recovery actions,” the court instructed.
The high court is set to revisit the matter in two weeks.
### Background
This suo motu case was initiated following the massive landslides that struck Wayanad on July 30, 2024. The disaster resulted in dozens of deaths and displaced hundreds, leaving many struggling with financial burdens.
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*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
