Kalpetta: The Central Government has informed the Kerala High Court that it cannot waive bank loans of victims affected by the Mundakkai–Chooralmala landslide, citing absence of any legal provision allowing such relief.

In its submission to the Court, the Centre said that loan waivers fall outside its jurisdiction and that the decision rests with the Boards of Directors of the respective banks.

The High Court had repeatedly sought the Centre’s stance on whether the loans of the disaster victims could be written off and had directed it to issue a clear response. The latest communication clarifies that the Union Home Ministry does not have the authority to approve a loan waiver under existing laws.

The Kerala High Court had earlier given the Central Government a final opportunity to clarify its decision on waiving bank loans for victims of the Mundakkai–Chooralmala landslide in Wayanad, directing the Centre to submit its stance by September 10, according to Mathrubhumi News.