The Loan Moratorium case was again heard in the Supreme Court today. Solicitor General Tushar Mehta presented the government’s side at the hearing. He said that if the interest of the loan is forgiven, then there will be a loss of 6 lakh crores.
“Something More Needs to be Done” – Tushar Mehta
The Supreme Court said in the Loan Moratorium hearing that no one is saying nothing has been done. It is not the case that nothing has been done. Our point is that in view of the conditions that industries are going through, something more needs to be done.
Due to certain Conditions, the Benefit of RBI is Taken Away
The same RBI has been issued for the circular. But there are certain conditions whereby the benefit given by RBI is taken away. Many people are deprived of this benefit.
Although the circular of restructuring had come in August itself, the problems of the people are going to continue. Therefore, a lot more needs to be done. March 2021 will mean that many people will not be able to take advantage of it.
Only Payment of Installments was Deferred
The Solicitor General stated that no exemption was considered. Payment for installments under the moratorium was deferred only. The Indian banking system currently has 8 depositors behind a single borrower.
Mehta said that no one would have paid attention to the fact that most of the expenditure goes to public health. Every ministry is often monitored by such reliefs.
Rs 3 Lakh Crore Emergency Credit Scheme
He said in court that whatever steps the central government has taken, he should have taken the same. NDMA has expressed this aspect of whether the finance ministry can take a call on it. They have agreed that the ministry can make a call or decision.
Middle and lower-middle-class people wanted an exemption. And others are big corporate giants who are struggling with legacy disputes. He had a lot of problems even before Corona, and it may be that his problems were exacerbated after the Corona epidemic. Rs 3 lakh crore emergency credit link scheme has been launched.
Forgive Interest of 6 Lakh Crores is not a Solution
Interest forgiveness has never been a solution. The old defaulters have nothing to do with covid. In such a situation, it is not right to forgive the interest of 6 lakh crores. People have misunderstood the Moratorium. It is simply a system of postponing installments.
Half of the borrowers knew about this that there is no discount on loan interest. So they did not take advantage of it. We want to inform you that restructuring all loan accounts and giving them customized tax relief accordingly is neither possible for RBI nor for the Ministry of Finance.
Power Sector should not be Declared as NPA
Everything that could have been done for the power sector has been done. Senior advocate Abhishek Manusinghavi of the Supreme Court said that the power sector should not be declared a bad debt (NPA).