After High Court Nudge, Centre Agrees To Free Kerala Govt Of ₹120 Crore Arrears For Immediate Use In Wayanad Rehabilitation

Update: 2025-01-10 10:50 GMT
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The Central government on Friday agreed to free up for now  ₹120 crore debt to be paid by the Kerala government towards arrears of airlifting services provided by the Centre in 2006, 2016, 2017, so as to enable the State to put the amount for immediate use in Wayanad rehabilitation works. 

The development comes after the Kerala High Court asked the Union to consider relaxing SDRF/ NDRF norms for the State, in the aftermath of deadly Wayanad landslides.

The State had total ₹782.99 crores available in State Disaster Response Fund however, the same could not be utilised due to debt owed to the Centre. Division bench of Justice A.K.Jayasankaran Nambiar and Justice Easwaran S had on thus asked the Centre, on December 18 last year, to consider leeway in face of the pressing need for assistance in Wayanad.

Additional Solicitor General ARL Sundaresan today informed the Court that the Centre has sent a letter to the State, effectively freeing up the funds for immediate use. The Centre in its letter mentioned that as per the Scheme of the SDRF, the State Executive Committee constituted under the Disaster Management Act is empowered to incur expense from the fund which is already placed at their disposal

The Court noted, "The Central Government essentially accepts the proposal that was mooted by us in our previous order and has agreed to the freeing up of the amount of ₹120 crore for immediate use of the State government in connection with the ongoing rehabilitation proceedings at Wayanad. The said amount can be used, in relaxation of the SDRF and NDRF norms of the Central Government."

The Court also took into account that the disaster has been classified as a "disaster of sever nature". The Court was informed that the State can now tap into multiple funding sources for recovery and rehabilitation.

The case will be next heard on 16th January.

Case Title: In Re: Prevention And Management Of Natural Disasters In Kerala V State Of Kerala

Case Number: WP(C) 28509/ 2024 & Connected Cases

Click Here To Read/ Download Order

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