Govt. take over ₹18.75-crore loans of Wayanad landslide-hit families

In a major decision on the eve of the Budget, the State government has decided to take over loan liabilities to the tune of ₹18.75 crore of the July 2024 landslides-affected in Wayanad district.

At a press conference here on Wednesday, Minister for Revenue K. Rajan said the decision was taken at a meeting of the Cabinet. The Minister said the government would sanction funds from the Chief Minister’s Distress Relief Fund to take over 1,620 loan liabilities of 555 disaster-hit families.

Of these, loans up to ₹10 lakh totalled ₹16.91 crore, while those above ₹10 lakh came to ₹1.84 crore.

The Minister said the government intended to make the payment to 21 banks through the District Collector. However, a discussion would be held with the State-level Bankers’ Committee prior to it as the figures pertained to July last.

Since then, a moratorium was in effect. However, some interest payments could accrue in that period, the government would demand that those too be written off. Mr. Rajan said the government would also take up the issue of Cibil score of the loanees at the SLBC.

A high-level committee chaired by the Chief Secretary and comprising Secretaries of the Disaster Management and Finance has been appointed to take a decision on whether to include or exclude any person from the list of those whose loans would be taken over. Complaints too could be submitted to this committee.

The Minister said the State had sought that steps be taken to write off the loans as per Section 13 of the Disaster Management Act, 2005. The Chief Minister had also handed over a letter in this connection at a meeting with the Prime Minister.

He had also held discussion with top bank officials at a meeting of the SLBC. Though the Solicitor General had assured in court that necessary steps would be taken, the court was later informed that Section 13, according to which the National Disaster Management Authority could in cases of disasters of severe magnitude recommend relief in repayment of loans, had been repealed.

This, Mr. Rajan said, was done to attack the State government. However, the decision to take over the loans was taken to send the message that it would not succumb to such tactics, Mr. Rajan said.