Overview

• The court issued an interim order keeping all loan-recovery actions against Wayanad landslide survivors in abeyance until the public interest case is decided.
• Twelve major banks, including State Bank of India, Punjab National Bank and Bank of Baroda, were added as respondents and directed to state whether they will waive loans or justify recovery efforts.
• The Union government told the court there is no administrative provision to direct waivers and cited RBI guidelines and bank autonomy, a stance the bench described as unwillingness to act.
• Invoking Article 73 and the right to life with dignity under Article 21, the bench said demanding repayment when collateral has been destroyed violates victims’ dignity and that the Centre has “virtually failed” them.
• The judges noted recent approval of about ₹707 crore for Assam and Gujarat as context, listed the matter for October 29, and observed that some state-controlled lenders such as Kerala Bank have already written off loans.