The Centre cannot take a stance that it is unable to issue a directive to waive/write off loans of persons affected by disasters of severe magnitude like the Wayanad landslides by citing a Section that had been removed from the Disaster Management (DM) Act, the Kerala High Court said on Friday.

This was after the Centre cited Section 13 of the DM Act that had been removed earlier this year from the Act. Under the Section, the Centre could recommend relief regarding loan repayment to persons affected by disasters of severe magnitude.

In the course of hearing a suo motu case taken by the High Court following the massive landslides in Wayanad, the court said the Centre had Article 73 of the Constitution (that defines the extent of the Union’s executive power) to rely on.

“Please do not tell us that the Centre is powerless (in the wake of the removal of Section 13 from the DM Act). The Centre still retained its power to act since it did not derive power from the DM Act. Do not hide behind the removal of the legal provision to say that the Centre does not have the power to act,” the court added and granted three weeks time to the Centre to decide on the loan waiver and to respond.

The Centre had on Wednesday informed the High Court that Section 13 that empowered the National Disaster Management Authority to recommend banks to waive/write off loans or grant fresh loans to persons affected by disasters of severe magnitude had been removed from the DM Act by way of an amendment.

Chief Minister Pinarayi Vijayan had on Thursday written to Prime Minister Narendra Modi seeking his intervention to restore Section 13 of the DM Act. In the letter, he said its removal would further distress the victims of natural disasters.