SC adjourns hearing on loan moratorium case till next week

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SC adjourns hearing on loan moratorium case till next week

The Supreme Court on Thursday adjourned the hearing on the loan moratorium case till next week and asked the power producers to give suggestions on loan relief to RBI. A bench of the Apex Court, headed by Justice Ashok Bhushan fixed the matter for further hearing after a week.

During the course of the hearing, Solicitor General (SG) Tushar Mehta told the Supreme Court that pre-COVID defaulters can’t benefit from the fresh resolution framework. “The Committee studied the commercial situation, spoke to stakeholders, and assessed stress in various sectors,” said Mehta.

One of the petitioners and also a lawyer, Vishal Tiwari, who had filed the petition before the Supreme Court, said that he had already filed the submissions which may be allowed, to which the court responded that it will look at the submissions. Tiwari also said that the government and the RBI are not looking at the ground reality.

“Crores of people who have lost their job and they want just deferment of EMI… Resolution and restructuring plan of government is impractical and selective. It is not going to benefit common borrowers. Banks are not following and granting restructuring,” said Tiwari. Emphasizing on moratorium extension, he said that the pandemic is not over, and there is still very limited work in selective sectors.

“The Moratorium extension is the only relief in present time,” Tiwari added. The Union Finance Ministry had told the Supreme Court that it is the responsibility of banks to credit compound interest waiver for loans up to Rs 2 crores, and it is not for consumers to remind the banks of this scheme.

Solicitor General Mehta said that the court will ensure those who paid during the moratorium aren’t short-changed. The Top court was hearing petitions, including the one filed by one Gajendra Sharma, seeking to waive off interest on interest and appropriate directions in the loan moratorium, granted as a relief due to the COVID-19 pandemic. (ANI)

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