The Centre told the Supreme Court on Thursday that the government has extended sufficient pandemic-related relief to specific sectors and, therefore, further intervention by the court in fiscal policy matters is not required.
The submissions were made when the bench resumed hearing a clutch of petitions seeking relief in the form of an extension of loan moratorium period beyond six months.
Solicitor General Tushar Mehta told the bench of Justices Ashok Bhushan, M R Shah, and Subhash Reddy that the government has a grievance redressal mechanism. “This is a fiscal policy matter. The government is on the top of it….even if the petitioners say that there is a better option… that, too cannot be an opportunity for this court to interfere under Article 32,” Mehta said.
Mehta told the court that it is the responsibility of the banks to credit the compound interest waiver for loans up to Rs 2 crore, and not for consumers to remind the bank of the scheme.
The S-G briefed the bench on measures taken by the government and the central bank.
The Supreme Court also posed a question to the Centre as to why are the credit card holders entitled to the benefit of compound interest waiver under the central bank’s loan moratorium scheme for purchase of goods.
“People with credit card should not be given the benefit. They are using the card for purchase. They don’t have a loan,” the court remarked, after the Centre informed that credit card users are also eligible to receive ex-gratia payments.
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