Loan moratorium: Implement interest waiver as soon as possible, SC tells Centre

The Supreme Court on Wednesday said that it is not fair on the part of the Centre to take a month to implement its decision to grant waiver off interest on interest on a loan up to Rs 2 crore in specified categories during the six months moratorium. It remarked that the common man's Diwali is in government's hands now.

A bench presided over by Justice Ashok Bhushan asked the Union government to ensure issuance of notifications in this matter by November 2.

The bench, also comprising Justices M R Shah and R Subhash Reddy told Solicitor General Tushar Mehta, representing the Centre, that it does not require one month time to implement its decision on waiver off interest on interest on loans up to Rs 2 crore.

Also read: SC seeks Centre, RBI reply on loan moratorium by Oct 12

"This is not fair on the part of the government. When you have decided, then why it is taking time," the bench asked Mehta.

The bench said that the Centre should issue necessary orders based on its decision so that the common man can receive the benefits.

The bench said that the government should see the plight of the common man, as they know that Centre has taken a decision in their favour but they want some concrete result.

Mehta mentioned that the government would not gain anything by delaying its decision unnecessarily, but there are certain formalities which have to be completed. He added that banks will waive interest on interest and then they will get reimbursement from the government.

"To implement this, we have to ensure banks give us proper format," he submitted.

The court state that it wanted the Centre's decision should be translated into action practically.

The government had earlier informed the court of its decision to waive off compound interest on MSME and personal loans up to Rs two crore during the moratorium.