Mon Mar 03 13:44:43 UTC 2025: **Kerala High Court Halts Loan Recovery for Wayanad Landslide Victims**
KOCHI, March 3, 2025 – The Kerala High Court has issued an order preventing coercive loan recovery measures against individuals affected by the recent devastating landslides in Wayanad. The court’s directive, issued on Monday, mandates the State government and the State Level Banking Committee (SLBC) to refrain from such actions until the central government decides on the state’s request for a loan waiver.
The decision came during a hearing of a suo motu case initiated in response to the landslides. The Additional Solicitor General, representing the central government, informed the court that the request for a waiver is under consideration and a decision is expected within three weeks, pending SLBC recommendations. The central government is also reviewing a request from Kerala to extend the deadline for a capital investment scheme to February 11, 2026.
The court further requested clarification from the central government on the completion date of a rehabilitation project linked to a ₹529.50 crore interest-free loan. The State government indicated that completing the project by the March 31 deadline would be impossible. The High Court’s intervention provides crucial relief to landslide victims facing financial hardship.
First Piper 