The Loan Moratorium will be heard within the Supreme Court from 1 pm today. Yesterday, the court deferred the hearing twice. The first hearing at 12 noon was deferred until the evening yesterday and then the evening hearing was postponed for today.
A hearing will persist on whether the loan borrower will get an interest rebate. Earlier last week, the court deferred the hearing for 8 days. The RBI and therefore the government were also asked to present their case.
Government insists Court not to Interfere
The government submitted an affidavit within the case last week. The affidavit stated that it’s impossible to offer much relief to varied regions within the corona epidemic. At an equivalent time, the govt insisted that the courts shouldn’t interfere in economic policy. the govt was told by the Supreme Court that an adequate relief package has been given to various sectors. It’s impossible for the govt to supply more relief to those sectors amid the present epidemic.
Interest on Interest on Loans up to Rs 2 Crore
The government said within the affidavit that any relief aside from waiving interest on loans up to Rs 2 crore would be detrimental to the economy and therefore the banking sector. In an affidavit filed earlier, the central government had asked the govt to waive its ‘interest in interest’ on loans of up to Rs 2 crore. The court has said no guidelines were issued by financial institutions to supply relief on interest.