A Division Bench of the Kerala High Court on Friday asked the State government to give instructions to all the banks, especially cooperative banks not to deduct monthly instalments or arrears toward the loan taken by the persons affected by the Wayanad landside from the financial assistance provided by the government.
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The Bench comprising Justice A.K. Jayasankaran Nambiar and Justice Syam Kumar V.M. orally observed that it was very disturbing to learn from the news reports that the banks was trying to deduct the monthly instalments and arrears towards the loans from the relief money credited into the account of the affected persons.
The court orally observed that when the money was given for a particular purpose by a State government in discharge of its obligation to look after the citizens, that is basically in the nature of a trust. As the bank holds it in trust for the beneficiary, it cannot be appropriated towards other dues of the bank. In fact, banks have a fundamental duty under the Constitution to have compassion towards the living beings. The court also asked the State government to ensure that the financial relief provided by the government was really credited into the accounts of the affected persons.
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When the suo motu case relating to prevention and management of natural disasters registered following the Wayanad landslides came up for hearing, it was brought to the notice of the court that the banks were deducting the instalments towards the loan availed by persons affected by the landslides.
Special Government Pleader C.E. Unnikrishnan submitted that the State Level Bankers Committee meeting held on August 19 had approved in principle the suggestion of the government to write off all the loans taken by the persons affected by the disaster. A final decision is to be taken by the boards of the respective banks. Besides the amount collected as instalments after July 30 was directed to be credited into the accounts of loanees. A decision was also taken to sanction consumption loans upto ₹25,000 without any security as a speedy relief. The government had disbursed ₹6 lakh each to the dependents of 59 persons perished in the disaster.
The court also directed the State and the Central governments to file an affidavit clarifying whether they proposed to increase the number of subject experts in the disaster management authority and whether the advisory committee under the Disaster Management Act had been constituted at the national, State and district levels and if so, its composition. The court also ordered to provide the details of the funds allocated for the disaster management schemes and about steps to include a checklist of safety measures for landslide areas in the building rules, in the affidavit.