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Friday, October 30, 2020

SC gives govt one week to come up with plan on waiver of interest charged on deferred loan EMIs

The Bench, while granting time till Thursday, to the government noted that “the SG states that he shall endeavour to circulate affidavit by Thursday so that decision taken by the government may be intimated to the counsel and can be heard on Monday.

By: ENS Economic Bureau | New Delhi | Updated: September 29, 2020 6:06:35 am
The state government had approached the court against the order of the Chhattisgarh High Court rejecting its petition for directions to examine expert witnesses. (File)

The Supreme Court on Monday gave one more week to the government to come up with a plan on waiver of interest charged on deferred loan EMIs during the moratorium period to ease the financial burden on borrowers.

A Bench led by Justice Ashok Bhushan adjourned the matter till Monday after Solicitor General Tushar Mehta said that the issues were under “active consideration” of the government and a decision is likely to be taken within 2-3 days. “Some things are beyond my control,” Mehta told the Bench.

The Bench, while granting time till Thursday, to the government noted that “the SG states that he shall endeavour to circulate affidavit by Thursday so that decision taken by the government may be intimated to the counsel and can be heard on Monday. Interim orders to continue.”

The SC had, on September 10, extended its interim order that asked banks not to declare any loans as non-performing assets (NPAs) till further orders. It had given a “last chance” to the Centre and the Reserve Bank of India (RBI) to come up with a concrete plan on the waiver of interest issue. It had also asked the Centre to take a decision after considering the interests of all classes of creditors and all sectors of the economy. On September 3, the court had directed banks against declaring loan accounts that were not NPAs prior to August 31. The SC is hearing a batch of petitions seeking a waiver of interest on deferred EMIs during the extended moratorium period amid the nationwide lockdown. —FE

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