**‘Centre has failed Kerala people’: Kerala High Court on Wayanad Loan Relief**

*By Snehil Singh | Oct 08, 2025 04:44 pm*

The Kerala High Court has strongly criticized the central government for its refusal to waive loans of those affected by the devastating Wayanad landslides. The court declared that the Union government had “failed the people of Kerala,” emphasizing that the state “does not need the Centre’s charity.”

### Strong Judicial Critique of the Centre’s Stance

A Division Bench comprising Justice AK Jayasankaran Nambiar and Justice Jobin Sebastian expressed sharp disapproval of the Centre’s affidavit, which claimed that there was no legal provision to waive loans for disaster-affected individuals.

“Please tell the Union Government it has failed the people of Kerala,” the court remarked sternly to government counsel, dismissing the Centre’s position as mere “bureaucratic babble.” The judges stressed, “It is not about whether the Union can act, but whether they are willing to act.”

### Highlighting Funding Disparities

The court further pointed out that while the Centre had sanctioned relief funds for Assam and Gujarat floods — even though those floods were not classified as severe — financial assistance for Wayanad’s victims was withheld.

While expressing respect for the Constitution and the principle of separation of powers, the judges made it clear they would no longer issue directions to the Union government. Justice Nambiar remarked, “We don’t need the Union’s charity,” and ordered banks to immediately halt loan recovery from the affected persons.

### Next Steps in Legal Proceedings

The bench also announced that banks would be formally impleaded in the case and asked to clarify whether they intended to waive the loans fully or partially. “Provide the names of the banks. We will issue notice to them and implead them. Until they respond, we will direct a stay on recovery actions,” the court declared.

The matter is set to be heard again in two weeks.

### Background

The High Court’s suo motu case was initiated following catastrophic landslides that struck Wayanad district on July 30, 2024. The disaster claimed dozens of lives and displaced hundreds of residents, leaving many struggling to recover financially and emotionally.

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*This judgment highlights ongoing tensions between the state and central governments over disaster relief and loan waiver policies, reflecting broader challenges in addressing the needs of vulnerable communities in India.*
https://www.newsbytesapp.com/news/india/we-don-t-need-your-charity-kerala-hc-to-centre/story

**‘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.

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*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