KOCHI: The Kerala High Court on Friday expressed concern over reports that loan EMIs were deducted from the bank accounts of Wayanad landslide survivors as soon as they received the relief amount. The court asked the State government to give instructions to all the banks, especially the cooperative banks, not to deduct monthly installments or arrears toward the loan taken by the persons affected by the landside from the financial assistance provided by the government.
The Bench said that it was very disturbing to learn from the news reports that the banks were trying to deduct the monthly installments and arrears towards the loans from relief money credited into the account of the affected persons. “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 like a trust. As the bank holds it in trust for the beneficiary, it cannot be appropriated towards other dues of the bank. The banks have a fundamental duty under the Constitution to have compassion towards the living being and act responsibly.
The court directed the state government to inquire whether such practices were occurring and to consult the State Level Bankers Committee (SLBC). If confirmed, the court will intervene, said the Division Bench led by Justice A K Jayasankaran Nambiar and Justice Syam Kumar V M. The court also asked the state government to ensure that the financial relief provided was credited into the accounts of the affected persons. It issued the order when the suo motu case initiated following the Wayanad landslide incident came up for hearing.
