SC to consider matter on loan moratorium on Nov 18

Individual borrowers satisfied with pay-back scheme: petitioner

The Supreme Court on Thursday decided to consider on November 18 a matter related to RBI's circular on Covid-19 induced loan moratorium, as power producers and MSME sought relief after the government decided to waive off compound interest on loan upto Rs 2 crore.

A bench of Justices Ashok Bhushan, R Subhash Reddy and M R Shah posted the batch of pleas for hearing on November 18.

Senior advocate Rajiv Dutta, appearing for lead-petitioner, Gajendra Sharma, submitted that he was extremely grateful to the Centre and the RBI for helping the borrowers. He said the individual borrowers were satisfied with government's pay-back scheme rolled out from November 5.

He asked the court to dispose of his petition in wake of the affidavits by the RBI.

Last month, the RBI informed the court that the Union government has come out with a scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months period of moratorium, to the borrowers in specified loan accounts.

Under the scheme, borrowers of MEME, education, housing, consumer durables, credit card dues, automobile loans, personal loan to professionals, consumptions loans, with outstanding amount not exceeding Rs 2 crore, would be granted relief.

The scheme would apply for the six-month period from March 1, 2020 to August 31, 2020.

On Thursday, the court was informed that Solicitor General Tushar Mehta was putting forth arguments in the central vista matter.

Senior advocate Abhishek Manu Singhvi, however, asked the court to hear him relief for power producers.

Senior advocate V Giri, appearing for the RBI sought lifting restriction on classifying loans as Non Performing Assets.

The court allowed the parties to circulate short notes on the submissions before the next date of hearing.