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Centre Says It Cannot Waive Wayanad Landslide Victims’ Loans Due to Disaster Act Amendment

Kerala’s chief minister has appealed to Prime Minister Narendra Modi for reinstatement of Section 13 of the Disaster Management Act, which would enable loan relief to disaster survivors.

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Overview

  • On June 12, the Centre told the Kerala High Court it lacked legal authority to waive loans for Wayanad landslide victims under the amended Act.
  • The Kerala High Court had directed the Centre on April 10 to consider invoking Section 13 of the Disaster Management Act for loan relief.
  • A March amendment to the Act deleted Section 13, removing the NDMA’s power to recommend loan waivers or grant fresh loans on concessional terms after severe disasters.
  • Chief Minister Pinarayi Vijayan has formally petitioned Prime Minister Narendra Modi to restore the deleted provision and secure relief for affected families.
  • Kerala Bank has already waived Rs 5 crore in disaster loans, and the Centre has offered a one-year moratorium on repayments instead of full waivers.