News > Kerala HC rules against recovering loan arrears from disaster relief funds

Kerala HC rules against recovering loan arrears from disaster relief funds

After media reports highlighted cases where EMIs were allegedly deducted from these funds, the court directed the state government to clearly instruct cooperative banks and ensure such recoveries do not occur. The court also requested information on instances where loan arrears were recovered from the relief funds allocated to disaster victims. This ruling was made during a suo motu case considered by the court in response to the Wayanad tragedy.