Loan moratorium: SC postpones hearing to October 5 as government requests more time
The Supreme Court adjourned Monday to October 5 the hearing on the two motions to obtain an extension of the moratorium on the repayment of loans and a waiver of interest on the amount of interest on the loan due to the Covid-19 pandemic . The solicitor general representing the government told the court the issues are being considered by the government and a decision is expected to be made within 2-3 days.
The Supreme Court previously adjourned the hearing on September 10, ordering all decisions made by the RBI, the Indian government or the banks to be referred to it for review. The court had given RBI time to file the affidavit.
In previous hearings, the SC has said accounts that had not been declared non-performing assets (NPAs) as of August 31 should not be declared bad debts until the matter is resolved.
The court, seized of a petition filed by lawyer Vishal Tiwari, requested instructions, until the court reopens, from all banks to adhere to extending the moratorium period for lawyers / banking sector. services, transport and tourism industry, including drivers and others covered by these sectors and defer their EMI payment on term loans. He also requested that in the event that such acts are committed by the lender
Institutions then, strict measures will be taken against them in accordance with the law.
“The emergence of the Covid-19 pandemic in India has resulted in drastic financial difficulty as well as the health disaster unfolding in this country. Various people lost their jobs during this biological emergency and various professionals and others experienced real financial hardship, ”the plea said.
The Center and the Reserve Bank of India (RBI) informed the court that the moratorium on loan repayments could be extended for up to two years under certain conditions and that the sectors most affected by the economic downturn were underway. identification. He argued that waiving interest on deferred EMIs during the moratorium period would be contrary to basic finance canons and unfair to those who repay loans on time.