High Court building in Kerala | Photo Credit: RK Nithin
The divisional bench of the High Court in Kerala on Wednesday, March 26, 2025), expressed its opposition to the recommendations of the Banker Committee on the Moratorium and the restructuring of loans that survived the survivors from the landslides Wayanad.
When the SUO Motu was initiated in connection with the landslides for hearing, the bench, including judges AK Jayaskankaran Zambiar and the judiciary of ESwaran S, orally noted that the recommendation was not “satisfactory at all”, he added that “it is not fair to act like that.”
During the hearing, Arl Sundaresan, the next general lawyer who appeared for the center, he informed the bench that during a meeting entitled Center, a proposal on the moratorium and restructuring of loans presented by the banker committee approved with the reservation of RBI instructions.
He also stated that all parties involved, including the main minister, attended the meeting, and it was a “unanimous decision”.
He claimed that, according to the Committee’s proposal, there would be an annual moratorium for the loans of the survivors and the arrears of the amount of principal and its interest would be considered a new loan and the survivors would be given time to repay a new loan. It was the same proposal that was accepted during the Covid-19 period. The Committee did not consider any depreciation of loans. In fact, the center did not consider what the next steps they had to take and that only the proposal was recorded.
The court then stated that the center must “apply his mind independently” as to whether the depreciation of loans is required under the given circumstances. The center cannot “cite the predecessor of disproportionality to justify his subsequent order,” he said, adding that “in fact someone has to connect with the reality of the situation”.
The court pointed out that the Center gave up loans for agriculture during the period 2008–2009. Therefore, “it is not as if the Center was helpless to make a decision to give up loans”.
The center has been told to make an affidavit
The court asked the Center to file an affidavit, which further clarified the proposals of the banker committee and what decisions they took on them.
The additional general lawyer also stated that the mention of completion of the period in connection with rehabilitation projects was “only a hint” that the funds correspond to 50% of the original allocation of 1,059 Crore sanctioned by the center, which must be credited to the relevant implementing agencies in the state in the state or before 31 December, December, 2025.
The financial department, which would initially adopt funds, should attribute the amounts to the relevant departments nominated for implementing agencies for various projects with a rider that would be used in their accounts only for the projects listed in them.
Published – March 26, 2025 02:16
