Kerala Governor Arif Mohammed Khan on Sunday defended the central government’s position on the delay in releasing relief for the victims of the Wayanad landslides, stating that assistance would be provided once the state submits proper accounts to the Centre.

Speaking to media persons in Kochi, Governor Khan said that the state’s argument regarding a lack of funds was invalid and emphasised that financial assistance would be provided if the state submits proper accounts to the Centre. He slammed the state government for its unwillingness to utilise the funds it currently holds.

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The Governor expressed confidence in Prime Minister Narendra Modi’s assurances on Wayanad’s rehabilitation, stating that he trusted the Prime Minister’s commitment more than anyone else. The Governor’s comments come amid criticism from the state government over the Centre’s stance on the relief fund. The ruling CPI-M-led LDF and the Congress-led UDF opposition in Kerala have called for a hartal in Wayanad district on Tuesday to protest the Centre’s refusal to declare the Wayanad landslides a national disaster and the denial of financial assistance to those affected.

Earlier this week, the central government informed Kerala that there is no provision to declare any calamity a ‘national disaster’. This clarification came from Union Minister of State for Home Affairs Nityanand Rai in response to a request from Prof KV Thomas, Kerala’s Special Officer in Delhi, who had written to the Prime Minister seeking the national disaster declaration.

In his reply, the Union Minister explained that the current SDRF and NDRF norms do not allow for a calamity to be declared a national disaster. Rai emphasised that the primary responsibility for managing disaster-related matters lies with the state government. He also pointed out that flash floods are already listed as one of the 12 notified disasters under the State Disaster Response Fund (SDRF) guidelines, which place the onus of financial support on the state.

The Union government, he noted, has already allocated Rs 388 crore to Kerala for SDRF operations in the current financial year. Of this, Rs 291 crore has been provided by the Union government, with the first instalment of Rs 145 crore disbursed on August 31. Additionally, the state’s SDRF fund will have a balance of Rs 394 crore by April 1, 2024, providing Kerala with sufficient resources to manage the ongoing disaster response.

Meanwhile, the Reserve Bank of India (RBI) has clarified its position on the issue of loan waivers for Wayanad landslide victims. In response to a letter from KV Thomas, the state government’s special representative in Delhi, the RBI stated that it could not direct the writing off of loans for disaster victims. Instead, the RBI suggested that a moratorium or restructuring of loans might be possible, leaving the decision in the hands of individual banks.

KV Thomas, who had requested a more sympathetic approach from the RBI, pointed out that the State Level Bankers’ Committee (SLBC) has the authority to make decisions on loan waivers or restructuring. He emphasised that any decision regarding loan forgiveness or restructuring should be taken at the state level, with the SLBC empowered to either write off the loans or offer restructuring options for the affected individuals.