The Kerala High Court has strongly criticized the Central Government's stance on the issue of loan waivers for victims of the devastating Wayanad landslides that occurred in July 2024. The court expressed its displeasure with the Centre's claim that it is unable to direct banks to waive loans for those affected by the disaster, citing the removal of Section 13 from the Disaster Management Act (DM Act).

A division bench of Justices A.K. Jayasankaran Nambiar and P.M. Manoj made these remarks while hearing a suo motu case initiated by the High Court following the Wayanad landslides, which resulted in significant loss of life and property. The court questioned the Centre's reliance on the removal of Section 13, which previously empowered the National Disaster Management Authority to recommend loan waivers, as a reason for inaction.

The High Court emphasized that the Union Government possesses executive powers under Article 73 of the Constitution, enabling it to issue directives to banks regarding loan waivers, irrespective of the amendment to the DM Act. The court firmly stated that the Centre cannot evade its responsibility by hiding behind legal provisions and must clearly state its position on the matter.

The court has granted the Centre three weeks to clarify its decision on the loan waiver issue and to respond with a comprehensive affidavit. The case has been adjourned for further consideration on July 4.

In addition to the loan waiver issue, the Kerala High Court has also urged the Central Government to formulate a national-level disaster management plan for Indian roads, particularly National Highways. The court noted the increasing frequency of natural disasters across the country and emphasized the importance of having a comprehensive plan in place to ensure disaster preparedness and effective response. The court directed the Centre to outline the steps being taken in this regard while filing their affidavit on loan waivers.