SC extends loan repayment moratorium till September 28, asks govt to file a 'detailed affidavit' in two weeks
New Delhi | Jagran News Desk: The Supreme Court on Thursday extended the loan repayment moratorium till September 28, saying that the that the interim order it passed earlier will continue. The apex court had earlier passed an order directing banks not to declare any loan as Non Performing Assets (NPA) "because of non payment of instalments during moratorium period", which ended on August 31.
Recording the submissions of petitioners, the apex court also directed the government to file a detailed affidavit in two weeks and posted the matter for further hearing after two weeks.
The top court further asked the government to consult the Reserve Bank of India (RBI) on the issue and directed it to consider plea for not charging interest on interest on loans during moratorium.
"On the interest issue we have yet to take a decision... But, on the aspect of debiting of interest on interest, we are inclined to pass an order that it may not be debited," the apex court said, as reported by Bar and Bench.
Meanwhile, Senior advocate Rajeev Dutta, who was appearing for a set of borrowers, told the top court that compound interest is still being charged in loan cases. "Where is the relief? Loans being restructured, that should have been done earlier," he said, as reported by news agency ANI.
"Lakhs of people are in hospitals for their sufferings, lot of people have lost their sources of income. Central govt should make their stand clear, decide on relief on the issue of moratorium & waiving of interest on interest and others if it felt so," he added.
The Centre, on the other hand, last week had informed the top court that the moratorium on repayment of loans is extendable by up to two years, adding that it is in the "process of identifying the distressed sectors to decide what kind of relief could be provided, as per the impact of the hit they have taken".
"I am saying with a great sense of responsibility. Harish Salve also spoke with the bankers association. Most of the issues are addressed," the Solicitor General Tushar Mehta had said earlier.
Posted By: Aalok Sensharma