**‘Centre has failed Kerala people’: High Court on Wayanad Loan Relief**
*By Snehil Singh | October 8, 2025, 4:44 PM*
The Kerala High Court has strongly criticized the central government for its refusal to waive loans of those affected by the devastating landslides in Wayanad. The Division Bench, comprising Justice AK Jayasankaran Nambiar and Justice Jobin Sebastian, stated that the Union government had “failed the people of Kerala” and emphasized that the state “does not need the Centre’s charity.”
### Court’s Legal Critique: ‘Bureaucratic Babble’
The court was highly critical of the Centre’s affidavit, which argued that there was no legal provision allowing the waiver of loans for disaster-affected individuals. Addressing government counsel, the judges remarked, “Please tell the Union Government it has failed the people of Kerala,” dismissing the Centre’s stance as mere “bureaucratic babble.”
They clarified, “It is not about whether the Union can act, but whether they are willing to act.”
### Funding Disparity Highlighted
Highlighting a funding disparity, the court noted that the Centre had sanctioned relief funds for Assam and Gujarat floods, although these were not classified as severe disasters. While expressing respect for the Constitution and the separation of powers, the judges clearly stated they would no longer issue directions to the Union government.
“We don’t need the Union’s charity,” Justice Nambiar asserted, while simultaneously ordering banks to immediately stop all loan recovery proceedings against the affected persons.
### Legal Proceedings and Bank Involvement
The bench announced that banks would be impleaded in the case and directed them to clarify whether they planned to waive loans, either fully or partially. “Provide the names of the banks. We will issue notices and implead them. Until we receive their responses, we direct a stay on all recovery actions,” the court said.
The matter is scheduled to be heard again in two weeks.
### Background
This suo motu case was initiated by the Kerala High Court after massive landslides struck Wayanad on July 30, 2024, resulting in dozens of deaths and displacing hundreds of residents.
—
*Stay tuned for updates on this developing story.*
https://www.newsbytesapp.com/news/india/we-don-t-need-your-charity-kerala-hc-to-centre/story