State to take over loans of Meppadi landslide survivors

T'puram: Revenue minister K Rajan said the cabinet has decided to take over the loans of Meppadi-Chooralmala landslide survivors. At present, 555 beneficiaries have 1,620 outstanding loans totalling Rs 18.75 crore. State govt will also discuss the matter with the state-level bankers' committee.Rajan accused the Centre of being indifferent to the issue. HC had criticized the Centre for failing to waive loans though it had declared the disaster severe. This is a violation of its constitutional responsibility. The court also pointed out that asking people, who lost their land and livelihood in the disaster, to repay loans is inhumane. State govt had earlier requested the Centre to waive all loans under the Disaster Management Act, but the Centre removed that section, he said.Though state had informed HC that it was ready to take over the loans, the court had said it expected the Centre to fulfil its administrative responsibility, he said, adding that the decision was delayed because of that expectation.Moreover, govt also said the CIBIL scores of survivors, who took loans, should not be affected. Since Centre took adverse action, state govt decided to take over the liability using funds from the chief minister's distress relief fund. The loans were available to families on the rehabilitation list, family members of those killed in the disaster and businesses and shops. Govt had announced a moratorium on loans from Jul 30 2024. It will also ask the state panel to waive interest and ensure survivors' CIBIL scores are not reduced.