Kerala high court slams Centre over indecision on Wayanad loan waiver
Kochi: Kerala high court on Friday pulled up the Union govt for its delay in taking a definitive stance on granting loan waivers to those affected by the landslides at Chooralmala and Mundakkai in Wayanad, citing the omission of the relevant section in the Disaster Management Act.
The court was hearing a suo motu petition on rehabilitation of the landslide victims.
A bench of Justices A K Jayasankaran Nambiar and P M Manoj observed that the Centre cannot take the position that it lacks the power to waive loans for the landslide-affected due to the omission of Section 13 of the Act, which had earlier empowered the National Disaster Management Authority (NDMA) to recommend relief in the repayment of loans.
"We want to know categorically, through an affidavit filed by someone responsible in the Union govt, whether they are stating that they do not have the power to direct banks to waive loans.
We can understand a reluctance to act, but at least have the courage to say so. The decision must be taken by the Union govt. Let the Union take a decision," it said.
The court said while the NDMA might no longer have the statutory authority to recommend such relief, the Union govt still retained residual powers to take a decision.
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Referring to the affidavit filed by an undersecretary of the NDMA, which informed the court about the omission of Section 13, it said jurisprudential instructions should not emanate from an undersecretary in New Delhi.
The landslides, which struck the hill district on July 30, 2024, had claimed 298 lives and caused extensive property destruction.
Appearing for the Centre, assistant solicitor general A R L Sundaresan submitted that the court may need to consider whether the amendment to the Act has a prospective or retrospective effect.
The bench, however, responded that such a discussion was unnecessary as Article 73 of the Constitution clearly empowers the Union govt to act in such situations. "Please don't tell us the Union govt is powerless in a country with a quasi-federal structure, where residual power rests with the Union," it said.
Sundaresan further clarified that under Article 73, the executive power of the Union extends to any matter on which Parliament is competent to legislate and that where there is a legislative vacuum, the executive can still act. He added that while there is no doubt that the Centre has the power, the issue is whether it ought to exercise that power in a case such as this, especially by compelling lending banks to waive loans.
The bench, however, expressed its dissatisfaction with this position.
The court later granted the assistant solicitor general's request for three weeks' time to submit the Centre's stand and adjourned the case.
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