Kerala Govt tables bill to safeguard families' sole homes from banks' attachment

Thiruvananthapuram (Kerala) [India], September 30 (ANI): The Kerala Government on Tuesday tabled the Kerala Single Dwelling Place Protection Bill, 2025 in the Assembly, seeking to safeguard families from losing their only house in loan recovery proceedings.
The Bill, presented by Minister for Industries, Law and Coir P Rajeev, on behalf of Chief Minister Pinarayi Vijayan, ensures that if a family's sole residence is attached by banks, cooperative societies or other financial institutions due to loan default, the State Government will intervene to repay the dues fully or partially.

"This is a Bill of historic importance. Unfortunately, it was tabled amid noisy protests," P Rajeev said in the House, as the Opposition UDF disrupted proceedings. The Bill was referred to the Assembly Subject Committee, which will examine the provisions before it returns for debate next week.
The Bill lays down strict eligibility conditions as, loan amount should not exceed Rs 5 lakh, with total dues capped at Rs 10 lakh, the family must not own other properties or repayment means, land ownership should be within five cents in urban areas or 10 cents in rural areas, Annual family income should not exceed Rs 3 lakh, loans must have been availed for education, treatment, marriage, house construction/renovation, agriculture, or self-employment, Families must not have transferred property post-loan, Aadhaar possession is mandatory.
The proposed Act envisages a two-tier protection mechanism, a District-Level Dwelling Place Protection Committee (DLDPPC) chaired by the District Development Commissioner, which will conduct preliminary inquiries, conciliation, and recommend relief; and a State-Level Dwelling Place Protection Committee (SLDPPC) chaired by the Planning and Economic Affairs Secretary, empowered to settle liabilities, pay back lenders through district collectors, and return title deeds once attachment is terminated.
According to the proposed bill, repayment by the debtor's family is impossible, the SLDPPC can recommend Government takeover of dues, either fully or partially. It may also rehabilitate affected families under state housing schemes.
The bill proposes that persons may appeal SLDPPC decisions before the Chief Secretary or an Additional Chief Secretary within 30 working days. (ANI)