Overview

• The Division Bench issued an oral interim direction pausing all loan recovery from identified victims until further orders.
• Judges said banks controlled by the Union would be added as parties and required to file counter‑affidavits stating whether they will waive debts fully or partially.
• The court said any impleaded bank could seek to modify the stay after filing reasons if it does not intend to grant waivers.
• The Centre, relying on an MHA affidavit and claimed legal limits, told the court it cannot waive loans, a position the Bench dismissed as bureaucratic babble and unwillingness to act.
• The case, launched after the July 30, 2024 landslides that killed over 200 people, was posted for hearing in two weeks, and the court noted some state‑controlled banks have already waived loans.