NEW DELHI: The Centre and the RBI on Tuesday told the Supreme Court that the moratorium period on repayment of loans during the pandemic is ‘extendable’ by two years and several steps have been taken to help the stressed sectors, amid uncertainty over the scheme that ended on August 31.
Solicitor General Tushar Mehta told a three-judge bench, headed by Justice Ashok Bhushan, that a formal decision was yet to be taken, adding that a fresh affidavit has been filed in the top court on the issue.
“We are in the process of identifying the distressed sectors to vary benefits as per the impact of hit they have taken,” Mehta said.
Noting that the economy has contracted by 23 per cent due to the Covid-19, he said several steps had been taken for stressed sectors.
“I am saying with a great sense of responsibility. Harish Salve also spoke with the bankers’ association. Most of the issues are addressed,” the Solicitor General said.
The bench was seized of petitions demanding waiver of interest, or waiver of interest on interest on the suspended EMIs during the moratorium.Maintaining that the matter can’t delay any further, the bench posted it for further hearing on Wednesday.
The Supreme Court had last week sought the government’s stand on waiving interest on loan repayments during the moratorium, saying it cannot hide behind the RBI.
During the hearing, the RBI and the Centre maintained that a complete interest waiver was not possible as banks, too, had to pay interest to depositors.
Noting that everything can’t be left to banks, the SC had asked the government to consider interfering on the issue of interest waiver for the loan moratorium announced in view of the lockdown.