Bank Loan Moratorium Case: Supreme Court Gives Centre, RBI & Banks More Time To File Reply

Bank Loan Moratorium Case: Solicitor general Tushar Mehta, who is representing the Centre, Mehta sought some more time to place on record the details of the actions and apologised for the delay

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New Delhi: The much-awaited verdict by Supreme Court on loan moratorium interest waiver issue has been adjourned till October 5 with the apex court granting more time to the Centre, the Reserve Bank of India (RBI) and banks to submit a concrete reply on their stand on the issue. Solicitor general Tushar Mehta, who is representing the Centre, said the government has reached a very advanced stage in its decision-making process. However, Mehta sought some more time to place on record the complete details of the actions to be taken by the government, considering all sectors on the issue of loan moratorium. While apologizing for the delay, Mehta said, "Some things are beyond my control." The apex court is hearing petitions demanding waiver of interest, or waiver of interest on interest on the suspended monthly instalments during the moratorium period. What did the petitioner say? Senior advocate Rajiv Dutta, representing the petitioner were against the adjournment and insisted that the case to be heard and listed at the earliest. In the plea, petitioner Gajendra Sharma said the interest would continue to accrue during the moratorium, which ultimately the borrower would have to pay. He argued that no interest should be charged during the moratorium because people are facing “extreme hardship". The petition also mentioned paying additional interest on top of regular EMIs would be difficult. What did the apex court say? The apex court bench headed by justice Ashok Bhushan took on record Mehta's submissions and agreed to extend the time needed for the decisions to be placed on record. Earlier on 10 September, the court had granted the Centre, RBI and banks two weeks’ time to work together and submit a concrete reply on their stand on waiving of interest charged during loan moratorium and related issues. The court also ordered an interim extension of loan moratorium till 28 September, directing banks not to tag any loan as non-performing, till further orders. On 3 September, the court in an interim order directed that the accounts not declared as non-performing asset (NPA) as on 31 August shall not be declared as an NPA until further orders. The interim order was extended on the last date of hearing.