New Delhi, August 26
The Supreme Court on Wednesday took note of the Centre's alleged inaction and asked it to clarify its stand within a week on interest waiver for deferred loan installments during the moratorium period announced due to Covid-19 lockdown.
A Bench headed by Justice Ashok Bhushan said the Centre had not made its stand clear on the issue despite the fact that ample powers were available with it under the Disaster Management Act and was "hiding behind the RBI".
The apex court granted time to the government after Solicitor General Tushar Mehta sought a week to file a response. "My lordships may not say that. We are working in coordination with the RBI," Mehta said.
The Bench, also comprising Justices R Subhash Reddy and MR Shah, asked the Solicitor General to clarify stand on the Act and whether additional interest on existing interest could be accrued. Senior advocate Kapil Sibal, appearing for the petitioner, told the Bench that the loan moratorium deadline would end on August 31 and sought its extension.
The apex court posted the matter for hearing on September 1.
The top court had earlier said there was "no merit in charging interest on interest" for deferred loan instalments.
The Bench was hearing a plea filed by Agra resident Gajendra Sharma, who has sought a direction to declare the portion of the RBI's March 27 notification "as ultra vires to the extent it charges interest on the loan amount during the moratorium period, which creates hindrance and obstruction in 'right to life' guaranteed by Article 21 of the Constitution". — PTI
'Clarify within 1 week'
- SC has asked Centre to clarify stand on interest waiver during loan moratorium
- The moratorium on loan instalments was announced during Covid lockdown
- SC has asked whether additional interest on existing interest could be accrued
from The Tribune https://ift.tt/3aY3Fsa
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