Kerala Government Steps In to Relieve Landslide Survivors of Loan Burden
In a significant move to provide relief to victims of a devastating natural disaster, the Kerala state cabinet has decided to take over the outstanding loans of survivors from the Meppadi-Chooralmala landslide. Revenue Minister K Rajan made this announcement in Thiruvananthapuram, highlighting the state's commitment to supporting those affected by the tragedy.
Details of the Loan Takeover Initiative
The initiative will benefit 555 individuals who currently hold a total of 1,620 outstanding loans, amounting to approximately Rs 18.75 crore. These loans were extended to families listed for rehabilitation, relatives of those who lost their lives in the disaster, as well as local businesses and shops impacted by the landslide.
The state government had previously announced a moratorium on these loans starting from July 30, 2024. Now, with the cabinet's decision, the financial burden will be entirely assumed by the state, utilizing resources from the Chief Minister's Distress Relief Fund.
Criticism of Central Government's Response
Minister Rajan strongly criticized the central government for its perceived indifference towards the plight of the landslide survivors. He pointed out that despite the disaster being declared severe, the Centre failed to waive the loans as expected under the Disaster Management Act.
"This is a violation of its constitutional responsibility," Rajan stated, echoing the sentiments expressed by the Kerala High Court. The court had earlier described asking people who lost their land and livelihood to repay loans as "inhumane" and criticized the Centre for not fulfilling its administrative duties.
Protection of Credit Scores and Further Actions
A crucial aspect of this decision is the protection of the survivors' financial reputations. The government has emphasized that the CIBIL scores of those who took loans should not be adversely affected by this takeover. Since the Centre took no favorable action, the state has intervened to prevent any negative impact on the creditworthiness of the survivors.
Furthermore, the state government plans to discuss the matter with the State-Level Bankers' Committee. It will also request the committee to waive the interest on these loans and ensure that the survivors' CIBIL scores are not reduced, providing comprehensive financial relief.
Background and Legal Context
The state had earlier requested the Centre to waive all loans under the Disaster Management Act, but the relevant section was removed by the central government. Although Kerala had informed the High Court of its readiness to take over the loans, the court had expressed hope that the Centre would step in, leading to a delay in the decision.
This proactive measure by the Kerala government underscores its dedication to alleviating the suffering of disaster victims and ensuring their financial stability in the aftermath of such catastrophic events.
