NEW DELHI: Asking the Centre not to hide behind the RBI, the Supreme Court on Wednesday directed it to clarify its stand on waiving interest on loans during the moratorium period.
“It is your responsibility to take steps under the Disaster Management Act. You have enough powers to decide the issue of waiver. You cannot just depend on the RBI,” the bench headed by Justice Ashok Bhushan said.
The court’s observation came after Solicitor General Tushar Mehta referred to the RBI’s affidavit, and said the banking institutions are also distressed.
“The problem was created by your (Centre) lockdown. This isn’t the time to take care of only the business interests. You must also consider the plight of the people,” the bench noted.
Mehta said such observations could have some repercussions for the government, which has been issuing all necessary directions under the Disaster Management Act.
“Then you must take a stand. Whether interest should be charged and any interest on interest should be charged during moratorium period,” the bench noted.
Govt to make stand on moratorium clear by Sep 1
Senior advocate Kapil Sibal, appearing for one of the petitioners, told SC the loan moratorium scheme is ending on August 31 and it should be extended. “I am only saying that till these pleas are decided, the extension should not end,” Sibal said. SC posted the matter for September 1, asking the Centre to come back with its stand on the issue