SC defers plea on interest waiver during moratorium

The Supreme Court on Wednesday deferred the hearing for petitions seeking a waiver of interest on interest during the loan moratorium period for November 2.

New Delhi:The Supreme court on Wednesday deferred the hearing for petitions seeking a waiver of interest on interest during the loan moratorium period for November 2. The court added that it expects the government to implement its plan for a waiver by then.

The government had agreed to waive off interest for loans up to 2 crores rupees in case of individuals and MSMEs. Solicitor General Tushar Mehta appearing for the centre informed the court that it will be implemented by November 15 and they are trying to implement it earlier.

Unimpressed by the submission, the court wondered why the government would take an entire month to implement a simple waiver scheme when the decision regarding the same has already been taken.

The Court said that it should look at the plight of the common man.

Presently, the government has not issued any order to any bank or RBI and has merely submitted an affidavit stating that it will bear the burden of waiving off for loans up to 2 crores in certain categories.

Advocate for individual borrowers' informed the court that the banks have already started levying interest on interest and that must be stopped. However, the court said that they are protected from being classified as NPAs and the government also has laid out a roadmap on waiver which should be implemented at the earliest.

The matter will again be heard on November 2.