Supreme Court focuses on loan moratorium plan

New Delhi: The Supreme Court of India on Thursday issued a whip to the central government asking it to “come up with something specific” and consider pleadings not to charge interest on deferred EMIs during the moratorium period. The Supreme Court also asked the center not to downgrade the credit / asset rating of borrowers.Also read – NEET-SS 2021: Doctors knock on the door of the Supreme Court, challenging “last minute abrupt changes” in exam pattern

A bank led by Judges Ashok Bhushan, R. Subhash Reddy and MR Shah called on the union government, Reserve Bank of India and banks to get their heads together and decide on crucial issues – sector credit restructuring, interest payments, etc. – within of two weeks. Also read – ‘Third wave does not start immediately’, Supreme Court allows Kerala government to hold Class XI exams offline

The Supreme Court said it was required to allow the center two weeks to issue an affidavit, but is not interested in adjourning the case any further. Also read – COVID-related deaths or not? After the “3. Wave “of the Supreme Court, the center issues guidelines | The central theses

Prosecutor General Tushar Mehta, who appeared for the government, said a top-level committee of experts has been set up to make decisions on the issue of the moratorium extension, interest on interest during the moratorium, and other related issues.

The SC warned that there would be no further extension and that it would consider various petitioners’ prayers at the next meeting. The next hearing on the matter was set for September 28th.

Earlier this month, the center, led by Narendra Modi, informed the Supreme Court that the moratorium on loan repayment could be extended by two years, in accordance with the Reserve Bank of India (RBI) circular.

“We are in the process of identifying the distressed sectors in order to decide what type of assistance could be provided based on the impact of the hit taken,” Attorney General Tushar Mehta, who appeared for the RBI and the center, told the SC, noting clear The moratorium can be extended according to the circular.

However, the bank insisted that on many other issues it had to make a decision based on its merits.

The case relates to a petition to the Supreme Court seeking instructions to waive interest during the moratorium period due to COVID-19. Due to the COVID pandemic-induced situation, RBI granted a three-month credit moratorium in March, which was then extended to August 31.

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