Disaster Management Case: Kerala HC Directs Union Govt To Clarify Stand On Loan Waivers By Oct 8

Kerala HC Grants Union Govt More Time to Decide on Loan Waivers in Disaster Management Case

Ernakulam: The Kerala High Court has granted the Union Government a final three-week extension to clarify its position on the waiver of bank loans as part of a broader public interest litigation concerning the prevention and management of natural disasters in the state. The Division Bench, comprising Justice A.K. Jayasankaran Nambiar and Justice Jobin Sebastian , scheduled the next hearing for October 8, 2025, for the government to submit its definitive affidavit.

Case Background

The order was issued in Writ Petition (Civil) No. 28509 of 2024, a case taken up by the High Court to oversee the state's preparedness and response mechanisms for natural disasters. A key issue under consideration is the provision of financial relief, specifically the waiver of bank loans for individuals affected by such calamities.

Submissions in Court

During the hearing, the court noted that one of the respondents had complied with a previous directive by filing a comprehensive Disaster Management Plan. The two-volume plan, covering highways and road accidents, was placed on record.

However, the central point of discussion was the pending decision on loan waivers. The Additional Solicitor General of India , representing the Union Government, informed the court about an "ambiguity" within the government regarding which ministry is authorized to make a final decision on the matter. Expressing regret for the delay, he assured the court that the issue would be resolved internally and requested an additional three weeks to finalize the government's stance.

Court's Decision and Direction

The Bench considered the submission and expressed its satisfaction that "efforts are still being taken by the Union Government to find a solution to the issue of waiver of bank loans." Accepting the request for an extension, the court observed:

"We deem it appropriate to accept the request of the learned Additional Solicitor General of India for some more time. We accordingly direct that this matter be posted on 08.10.2025, for the affidavit of the Union Government."

The court has made it clear that it expects a conclusive affidavit from the Union Government by the next hearing date, putting the onus on the central authorities to resolve their internal procedural issues and provide a clear policy decision on the crucial matter of financial relief for disaster-affected citizens.