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  • Supreme Court tells Centre to give relief in interest on loans in moratorium

Supreme Court tells Centre to give relief in interest on loans in moratorium

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Headlines August 27, 2020
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On Wednesday, the Supreme Court of India criticised the central government while seeking to know their stand on waiver of interest in loan payment during the moratorium period. When the Centre pointed out that this would affect banks and businesses, the top court responded saying that ‘this happened because you locked down the country’.

The court further stated that the Centre, though can waiver of interest through their Disaster Management Act, has not clarified their stand regarding the matter. A bench under Justice Ashok Bhushan not only sharply criticised the government, but also stated that they need to look into sufferings of the people during lockdown period and asked to file a separate affidavit.

Meanwhile, the Reserve Bank of India (RBI), in June, had filed an affidavit before the Supreme Court stating that it would not support waiver off interest as it would affect businesses and banks including the RBI.

The court, which was hearing a petition filed by Agra-based Gajendra Sharma, has adjourned the matter for hearing next on 1 September. The bench has also asked the central government to file their response regarding the matter.

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