Interest Waiver Case On Deferred EMIs Under Moratorium To Be Heard Next On Oct 5

On Monday, the apex court put off the interest waiver case to be next heard and decided on October 5. The plea also concerns to further extension of the moratorium period on loan repayment which was granted in view of the Covid 19 pandemic as businesses and individuals suffered financially.

Solicitor General on behalf of the government told the court that the issues are being actively considered upon by the centre and a decision shall likely be taken in 2-3 days time.

"The emergence of the Covid-19 pandemic in India has brought a drastic financial difficulty along with the health disaster that is going on in this country. Various people have lost jobs during this situation of biological emergency and various professionals and others have gone through real financial hardship," read the plea.

In the previous hearing on September 10, the SC directed that all decisions taken by the RBI, centre or banks be put before it for deliberation. The court allowed time to the Reserve Bank of India for filing the affidavit. Also, the court on the same day iterated that those loan accounts which have not been classified as bad debt or NPA as on August 31 should not be declared NPA until the matter is finalized.

The Reserve Bank of India and the Centre told the SC that the moratorium facility on loan repayment could be extended to up to 2 years basis certain specifications and sectors that have suffered the most on account of the pandemic are being recognized. Further, it made an argument saying that interest waiver on deferred EMIs during the moratorium shall be against the basic norms of finance as well as unjust to borrowers who paid EMIs as per the schedule.

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